Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 30, 2023 | ||
Entity File Number | 001-41501 | ||
Entity Registrant Name | Mobileye Global Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 88-0666433 | ||
Entity Address, Address Line One | Har Hotzvim, Shlomo Momo HaLevi Street | ||
Entity Address, Address Line Two | 1 | ||
Entity Address, City or Town | Jerusalem | ||
Entity Address, Country | IL | ||
Entity Address, Postal Zip Code | 9777015 | ||
City Area Code | 972 | ||
Local Phone Number | 2-541-7333 | ||
Title of 12(b) Security | Class A common stock, $0.01 par value per share | ||
Trading Symbol | MBLY | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,560 | ||
Entity Central Index Key | 0001910139 | ||
Current Fiscal Year End Date | --12-30 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Kesselman & Kesselman C.P.A.s | ||
Auditor Location | Tel Aviv, Israel | ||
Auditor Firm ID | 1309 | ||
Class A common stock | |||
Document and Entity Information | |||
Entity Common Stock, Shares Outstanding | 94,731,407 | ||
Class B common stock | |||
Document and Entity Information | |||
Entity Common Stock, Shares Outstanding | 711,500,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 1,212 | $ 1,024 |
Trade accounts receivable, net | 357 | 269 |
Inventories | 391 | 113 |
Other current assets | 106 | 110 |
Total current assets | 2,066 | 1,516 |
Non-current assets | ||
Property and equipment, net | 447 | 384 |
Intangible assets, net | 2,053 | 2,527 |
Goodwill | 10,895 | 10,895 |
Other long-term assets | 116 | 119 |
Total non-current assets | 13,511 | 13,925 |
TOTAL ASSETS | 15,577 | 15,441 |
Current liabilities | ||
Accounts payable and accrued expenses | 229 | 189 |
Employee related accrued expenses | 87 | 88 |
Related party payable | 39 | 73 |
Other current liabilities | 48 | 34 |
Total current liabilities | 403 | 384 |
Non-current liabilities | ||
Long-term employee benefits | 56 | 56 |
Deferred tax liabilities | 148 | 162 |
Other long-term liabilities | 46 | 45 |
Total non-current liabilities | 250 | 263 |
TOTAL LIABILITIES | 653 | 647 |
Equity | ||
Additional paid-in capital | 14,886 | 14,737 |
Accumulated other comprehensive income (loss) | (9) | |
Retained earnings | 30 | 57 |
TOTAL EQUITY | 14,924 | 14,794 |
TOTAL LIABILITIES AND EQUITY | 15,577 | 15,441 |
Class A common stock | ||
Equity | ||
Common stock | 1 | 1 |
Class B common stock | ||
Equity | ||
Common stock | $ 7 | $ 8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 4,000,000,000 | 4,000,000,000 |
Common stock, shares issued | 94,652,348 | 51,911,905 |
Common stock, shares outstanding | 94,652,348 | 51,911,905 |
Class A common stock | ||
Common stock, par value | $ 0.01 | |
Common stock, shares outstanding | 94,652,348 | |
Class B common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 711,500,000 | 750,000,000 |
Common stock, shares outstanding | 711,500,000 | 750,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||
Revenue | $ 2,079 | $ 1,869 | $ 1,386 |
Cost of revenue | 1,032 | 947 | 731 |
Gross profit | 1,047 | 922 | 655 |
Research and development, net | 889 | 789 | 544 |
Sales and marketing | 118 | 120 | 134 |
General and administrative | 73 | 50 | 34 |
Total operating expenses | 1,080 | 959 | 712 |
Operating income (loss) | (33) | (37) | (57) |
Interest income with related party | 0 | 18 | 3 |
Interest expense with related party | (24) | ||
Other financial income (expense), net | 49 | 11 | (3) |
Income (loss) before income taxes | 16 | (32) | (57) |
Benefit (provision) for income taxes | (43) | (50) | (18) |
Net income (loss) | $ (27) | $ (82) | $ (75) |
Earnings (loss) per share attributed to Class A and Class B stockholders: | |||
Basic | $ (0.03) | $ (0.11) | $ (0.10) |
Diluted | $ (0.03) | $ (0.11) | $ (0.10) |
Weighted-average number of shares used in computation of earnings (loss) per share attributed to Class A and Class B stockholders (in millions): | |||
Basic | 805 | 759 | 750 |
Diluted | 805 | 759 | 750 |
Other comprehensive income (loss), net of tax | $ 9 | $ (14) | $ 5 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (18) | $ (96) | $ (70) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions | Common Stock | Additional paid-in capital | Parent Net Investment | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total |
Beginning balance at Dec. 26, 2020 | $ 15,842 | $ 15,842 | ||||
Net Income (Loss) | (75) | (75) | ||||
Other comprehensive income (loss), net | $ 5 | 5 | ||||
Net transfer from (to) Parent | 117 | 117 | ||||
Ending balance at Dec. 25, 2021 | 15,884 | 5 | 15,889 | |||
Net Income (Loss) | (139) | $ 57 | (82) | |||
Tax sharing agreement with Parent | $ (12) | (22) | (34) | |||
Share-based compensation expense | 50 | 124 | 174 | |||
Recharge to Parent for Share-based compensation | (66) | (52) | (118) | |||
Other comprehensive income (loss), net | (14) | (14) | ||||
Equity transaction in connection with the legal purchase of Moovit entities | (900) | (900) | ||||
Dividend Note with related party | (3,500) | (3,500) | ||||
Dividend distribution | (337) | (337) | ||||
Net transfer from (to) Parent | 84 | 84 | ||||
Issuance of Class B common stock and reclassification of Parent Net Investment in connection with the Initial Public Offering | $ 8 | 11,134 | $ (11,142) | |||
Issuance of Class B common stock and reclassification of Parent Net Investment in connection with the Initial Public Offering (in shares) | 750 | |||||
Issuance of Class A common stock in Initial Public Offering, net of underwriting discounts, commissions and offering costs | $ 1 | 1,031 | 1,032 | |||
Issuance of Class A common stock in Initial Public Offering, net of underwriting discounts, commissions and offering costs (in shares) | 52 | |||||
Dividend Note contribution from related party | (2,600) | (2,600) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 802 | |||||
Ending balance at Dec. 31, 2022 | $ 9 | 14,737 | (9) | 57 | 14,794 | |
Net Income (Loss) | (27) | (27) | ||||
Tax sharing agreement with Parent | (3) | (3) | ||||
Share-based compensation expense | 252 | 252 | ||||
Recharge to Parent for Share-based compensation | (100) | (100) | ||||
Issuance of common stock under employee share-based compensation plans (Shares) | 4 | |||||
Other comprehensive income (loss), net | $ 9 | 9 | ||||
Ending balance (in shares) at Dec. 30, 2023 | 806 | |||||
Ending balance at Dec. 30, 2023 | $ 8 | $ 14,886 | $ 30 | $ 14,924 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income (Loss) | $ (27) | $ (82) | $ (75) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation of property and equipment | 39 | 23 | 17 |
Share-based compensation | 252 | 174 | 97 |
Amortization of intangible assets | 474 | 544 | 509 |
Exchange rate differences on cash and cash equivalents | 5 | 6 | |
Deferred income taxes | (14) | (9) | (29) |
Interest on Dividend Note to related party, net | 18 | ||
Interest with related party, net | 16 | 12 | 20 |
Other | 1 | (2) | |
Changes in operating assets and liabilities: | |||
Decrease (increase) in trade accounts receivable | (88) | (114) | (62) |
Decrease (increase) in other current assets | 8 | (10) | (17) |
Decrease (increase) in inventories | (278) | (16) | 31 |
Increase (decrease) in accounts payable, accrued expenses and related party payable | 10 | 58 | 59 |
Increase (decrease) in employee-related accrued expenses and long term benefits | (1) | (52) | 36 |
Increase (decrease) in other current liabilities | (7) | (16) | 20 |
Decrease (increase) in other long-term assets | (3) | 17 | (7) |
Increase (decrease) in long-term liabilities | 7 | (5) | |
Net cash provided by operating activities | 394 | 546 | 599 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property and equipment | (98) | (111) | (143) |
Repayment of loan due from related party | 1,635 | 460 | |
Issuance of loan to related party | (336) | (474) | |
Other | (1) | ||
Net cash provided by (used in) investing activities | (98) | 1,187 | (157) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Business combination deferred consideration payment | (90) | ||
Net transfers from Parent | 84 | 181 | |
Dividend paid | 0 | (337) | 0 |
Share-based compensation recharge | (100) | (280) | |
Proceeds from initial public offering, net of offering costs | 0 | 1,034 | 0 |
Equity transaction in connection with the legal purchase of Moovit entities | (900) | ||
Repayment of Dividend Note with related party | (918) | ||
Net cash provided by (used in) financing activities | (100) | (1,317) | 91 |
Effect of foreign exchange rate changes on cash and cash equivalents | (5) | (6) | (1) |
Increase in cash, cash equivalents and restricted cash | 191 | 410 | 532 |
Balance of cash, cash equivalents and restricted cash, at beginning of year | 1,035 | 625 | 93 |
Balance of cash, cash equivalents and restricted cash, at end of year | 1,226 | 1,035 | 625 |
Supplementary non-cash investing and financing activities: | |||
Non-cash purchase of property and equipment | 17 | 13 | 21 |
Non-cash share based compensation recharge | 162 | ||
Dividend Note with related party | 3,500 | ||
Dividend Note contribution from related party | (2,600) | ||
Unpaid offering costs | 2 | ||
Tax sharing agreement with Parent | 3 | 34 | |
Supplemental cash flow information: | |||
Cash received (paid) for income taxes, net of refunds | (64) | (57) | $ (44) |
Interest paid to related party | $ (6) | ||
Interest received from related party | $ 16 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 30, 2023 | |
GENERAL | |
GENERAL | NOTE 1 GENERAL Background Mobileye Global Inc. (“Mobileye”, “the Company” or “we”) is a leader in the development and deployment of advanced driver assistance systems (“ADAS”) and autonomous driving technologies and solutions, aimed to provide the capabilities required for the future of autonomous driving, leveraging a comprehensive suite of purpose-built software and hardware technologies. Mobileye combines the operations of its consolidated subsidiaries, which include the Mobileye Group, as defined below. Mobileye operates as a subsidiary of Intel Corporation (“Intel” or the “Parent”), which acquired a majority stake in Mobileye in August 2017 (the “Mobileye Acquisition”). The remaining issued and outstanding shares of Mobileye were acquired by Intel in 2018. Before the completion of the Mobileye IPO and the reorganization (both as defined below) in October 2022, the Company consisted of the “Mobileye Group”, which combined the operations of Cyclops Holdings LLC (“Cyclops”), Mobileye B.V. and its subsidiaries, GG Acquisition Ltd. and Moovit App Global Ltd. and its subsidiaries (“Moovit”) and certain Intel employees mainly in research and development (the “Intel Aligned Groups”). The Mobileye IPO In December 2021, Intel announced plans to pursue an initial public offering of the Mobileye Group. In January 2022, Intel incorporated a new legal entity, Mobileye Global Inc., with the intent to contribute the Mobileye Group to Mobileye Global Inc. and to have Mobileye Global Inc. offer newly issued shares of common stock of Mobileye Global Inc. in an initial public offering. On October 28, 2022, the initial public offering of Mobileye (the “Mobileye IPO”) was completed and we issued 41,000,000 shares of our Class A common stock, at $21.00 per share, before underwriting discounts and commissions. Concurrently with the closing of the Mobileye IPO, the Company issued an additional 4,761,905 shares of its Class A common stock to General Atlantic (ME), L.P., a Delaware limited partnership, at $21.00 per share, pursuant to a private placement exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, for gross proceeds of $100 million (the “Concurrent Private Placement”). Mobileye’s Class A common stock began trading on the Nasdaq Global Select Market on October 26, 2022 under the ticker symbol “MBLY”. On November 1, 2022, we closed the sale of an additional 6,150,000 shares pursuant to the exercise of the underwriters’ over-allotment option. The Mobileye IPO generated proceeds to the Company of approximately $1.0 billion, including the proceeds from the underwriters exercise of their option and the Concurrent Private Placement, net of underwriting discounts and commissions in the amount of $41 million and offering costs in the amount of $18 million. Prior to the completion of the Mobileye IPO, we were a wholly-owned business of Intel Corporation. Upon the closing of the Mobileye IPO (after giving effect to the exercise of the underwriters’ over-allotment option), Intel continues to directly or indirectly hold all of the Class B common stock of Mobileye. Upon completion of the IPO, we completed the legal entity reorganization (“reorganization”) of the operations comprising the Mobileye Group business so that they are all under the single parent entity, Mobileye Global Inc., and the filing and effectiveness of our amended and restated certificate of incorporation. The reorganization was accomplished through a series of transactions and agreements with Intel, including the legal purchase of 100% of the issued and outstanding equity interests of the Moovit entities from Intel. Secondary Offering On June 7, 2023, the Company announced the pricing of a public secondary offering of 38,500,000 shares of its Class A common stock (which shares were received upon the conversion of 38,500,000 shares of Class B common stock into Class A common stock) by Intel at a public offering price of $42.00 per share, which closed on June 12, 2023 (the “Secondary Offering”). The Company did not receive any proceeds from this offering. The Company paid the costs associated with the registration of shares in connection with the Secondary Offering in the amount of $1 million, other than underwriting discounts, fees and commissions. These costs were expensed as incurred within general and administrative expenses. Upon the completion of the Secondary Offering, Intel continues to directly or indirectly hold all of the Class B common stock of Mobileye, which as of December 30, 2023, represents approximately 88.3% of our outstanding common stock and 98.7% of the voting power of our common stock. Operations in Israel On October 7, 2023, Hamas launched a series of attacks on civilian and military targets in Southern and Central Israel, to which the Israel Defense Forces have responded. In addition, Hezbollah has attacked military and civilian targets in Northern Israel, to which Israel has responded. How long and how severe the current conflict in Gaza becomes is unknown at this time and any continued clash among Israel, Hamas or Hezbollah or other countries or militant groups in the region may escalate in the future into a greater regional conflict. To date our operations and financial results have not been negatively affected, although as of January 31, 2024 approximately 10.5% of our employees have been called to reserve duty in the Israel Defense Forces. However, any hostilities involving Israel, regional geopolitical instability or the interruption or curtailment of trade or diplomatic relations between Israel and its trading partners as a result thereof could adversely affect our business, results of operations, and financial condition. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 30, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company operates on a 52-week or 53-week fiscal year that ends on the last Saturday in December. Fiscal year 2023 was a 52-week fiscal year. Fiscal years 2022 and 2021 were 53 and 52 weeks fiscal years. Prior to the Mobileye IPO The financial statements and accompanying notes that include periods ending or as of dates prior to the completion of the Mobileye IPO have been derived from the consolidated financial statements and accounting records of Intel and are presented as if the Company had been operating as a stand-alone company. The assets, liabilities, revenue, and expenses directly attributable to the Company’s operations, including the acquired goodwill and intangible assets, have been reflected in these consolidated financial statements on a historical cost basis, as included in the consolidated financial statements of Intel. The Company utilized the Intel Aligned Groups mainly in research and development activities. The associated costs of the Intel Aligned Groups are reflected on a specific attribution basis in the consolidated statements of operations and comprehensive income (loss). Intel Aligned Groups also participated in various Intel compensation and benefit plans. Portions of those plans’ costs were based on actual headcount and included in these consolidated financial statements. These costs are not necessarily indicative of costs that would have been incurred had the Company operated on a stand-alone basis. The statements of operations and comprehensive income (loss) include allocations of general corporate expenses from Intel. These expenses have been allocated to the Company on the basis of direct usage when identifiable or allocated on the basis of headcount. Management of the Company and Parent considered the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of the services provided to or the benefit received by the Company during the periods presented. Mobileye largely continued to operate as a standalone operation and had not been fully integrated into Intel, with limited use of corporate overhead functions. The allocated costs for the periods presented in the statement of operations and comprehensive income (loss) were not material. The allocations may not be reflective of the expenses that would have incurred had the Company operated as a stand-alone company for the periods presented. These costs also may not be indicative of the expenses that the Company will incur in the future or would have incurred if the Company had obtained these services from a third party. Actual costs that may have been incurred if the Company had operated as a stand-alone company would depend on a number of factors, including the chosen organizational structure, the outsourcing of certain functions, and other strategic decisions. As Mobileye Group was not historically held by a single legal entity, total parent net investment is shown in lieu of equity in the periods prior to the completion of the Mobileye IPO and represents Intel’s total interest in the recorded net assets of Mobileye Group. All intercompany transactions within the previously combined businesses of the Company have been eliminated. Transactions between the Company and Intel, arising from arrangements with Intel and other similar related-party transactions, were considered to be effectively settled at the time the transactions were recorded, unless otherwise noted. The total net effect of the settlement of these transactions was reflected within parent net investment as a component of equity and within net transfers from Parent as a financing activity in the periods prior to the completion of the Mobileye IPO, unless otherwise noted. Following the Mobileye IPO Following the completion of the Mobileye IPO, the consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Following the legal entity reorganization and the completion of the Mobileye IPO, Intel continues to control the Company and holds all of the Company’s Class B common stock. Refer to Note 9 Related Party Transactions Equity The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All intercompany balances and transactions have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts and events reported and disclosed in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions and factors, including the current economic environment, that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. On an on-going basis, management evaluates its estimates, judgments, and assumptions. The most significant estimates and assumptions relate to useful lives of intangible assets, impairment assessment of intangible assets and goodwill, and income taxes. Functional currency The majority of the Company and its subsidiaries revenue are denominated in the United States (“U.S.”) dollar, as are most purchases of materials and components. The Company’s financings and capitalization have also been denominated in the U.S. dollar. Management believes that the currency of the primary economic environment in which the Company and its subsidiaries operate is the U.S. dollar, and thus, the U.S. dollar is the functional and reporting currency of the Company and its subsidiaries. Accordingly, transactions in currencies other than the U.S. dollar are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. Monetary assets and liabilities that are denominated in currencies other than the U.S. dollar are measured using the official exchange rate at the balance sheet date. Non-monetary assets and liabilities are remeasured into the functional currency using the historical exchange rate. The effects of foreign currency remeasurements are recorded in the consolidated statements of operations and comprehensive income (loss) as other financial income (expense), net. Cash, cash equivalents and restricted cash Cash equivalents consist of short term deposits and money market funds. The short term deposits are short-term unrestricted highly liquid investments that are readily convertible to cash and with original maturities of three months or less at acquisition. The money market funds consist of institutional investors money market funds and are readily redeemable to cash. Restricted bank deposits are cash amounts related to bank guarantees mainly in connection with lease agreements and import of vehicles. Such deposits are stated at cost including accrued interest, which approximates market values. These amounts are included in other current and long-term assets on the consolidated balance sheets. The following is a reconciliation of the cash, cash equivalents and restricted cash for each period presented: As of December 30, December 31, U.S. dollars in millions 2023 2022 Cash $ 58 $ 188 Short term deposits 222 285 Money market funds 932 551 Restricted cash (within other current and other long-term assets) 14 11 Cash, cash equivalents and restricted cash $ 1,226 $ 1,035 Fair value measurement When determining fair value, the Company considers the principal or most advantageous market in which it would transact, as well as assumptions that market participants would use when pricing the asset or liability. The Company assesses fair value hierarchy levels for its financial assets based on the underlying financial instrument. Consistent with Accounting Standards Codification (“ASC”) 820, Fair Value Measurement, the Company follows a three-tier fair value hierarchy as a basis for considering the assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but are corroborated by market data or active market data for similar, but not identical assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The Company monitors and reviews the inputs and results of these valuation models to help ensure the fair value measurements are reasonable and consistent with market experience in similar asset classes. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers credit risk in its assessment of fair value. The carrying value of short term deposits classified as cash equivalents approximates their fair value due to the short maturity of these items. The Company’s investment in money market funds are measured at fair value within Level 1 of the fair value hierarchy because they consist of financial assets for which quoted prices are available in an active market. Interest income related to money market funds for the years ended December 30, 2023 and December 31, 2022 amounted to $46 million and $1 million, respectively. The carrying amounts of trade accounts receivable and accounts payable approximate fair value because of their generally short maturities. As described in further detail in Note 10, goodwill is evaluated for impairment at least once a year or more frequently if indicators of potential impairment exist. If a quantitative assessment is required, than the reporting unit’s fair value is measured. Inventories Inventories are stated at the lower of cost and net realizable value. The Company computes inventory cost on an average cost basis and adjusts for excess and obsolete inventories primarily based on future demand and market conditions, including product-specific facts and circumstances which considers the Company’s customer base and an assessment of selling price in relation to product cost. Once written-down, a new lower cost basis for that inventory is established. Property and equipment, net Property and equipment are stated at cost, less accumulated depreciation. Property and equipment are depreciated on a straight-line basis over their estimated useful lives. The estimated useful lives per asset type are as follows: Years Computers, electronic equipment and software 3-7 Vehicles 7 Office furniture and equipment 14 Buildings 15-25 Leasehold improvements are amortized by the straight-line method over the shorter of the term of the lease and estimated useful life of the improvements. Assets in construction are not depreciated until they are available for their intended use. Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The Company includes the results of operations of the businesses that we acquire in the consolidated financial statements beginning on the date of acquisition. The Company allocates the purchase price paid for assets acquired and liabilities assumed in connection with the Company’s acquisitions based on their estimated fair values at the time of acquisition. This allocation involves a number of assumptions, estimates, and judgments in determining the fair value of the following: ● intangible assets, including the valuation methodology, estimations of future cash flows, discount rates, and growth rates, as well as the estimated useful life of intangible assets; ● deferred tax assets and liabilities, uncertain tax positions, and tax-related valuation allowances, which are initially estimated as of the acquisition date; ● inventory; property and equipment; pre-existing liabilities or legal claims; deferred revenue; and contingent consideration, each as may be applicable; and ● goodwill measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. The Company’s assumptions and estimates are based on comparable market data and information obtained from the Company’s management and the management of the acquired companies. The Company allocates goodwill to the reporting units of the business that are expected to benefit from the acquisition. Goodwill The Company performs an annual impairment assessment of goodwill at the reporting unit level in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. The analysis may include both qualitative and quantitative factors to assess the likelihood of impairment. In accordance with ASC 350, the Company initially assesses qualitative factors to determine whether the existence of events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Qualitative factors include industry and market considerations, overall financial performance, and other relevant events and factors affecting the reporting unit. If the Company determines, based on this assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, it performs a quantitative goodwill impairment test by comparing the reporting unit’s fair value with its carrying amount. An impairment loss is recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value. The Company did not record any impairment of goodwill for any of the periods presented. The Company’s quantitative impairment test may consider both the income approach and the market approach to estimate a reporting unit’s fair value. Significant estimates for the income approach include growth rates, estimated costs, and discount rates based on a reporting unit’s weighted average cost of capital. The estimated fair value using a market approach is based on a number of assumptions, including current market capitalization as corroboration of fair value. Forecasts and estimates are based on assumptions that are consistent with the plans and estimates used to manage the business. Changes in these estimates could change the conclusion regarding an impairment of goodwill. Intangible assets, net The Company amortizes acquisition-related intangible assets that are subject to amortization over their estimated useful life. The Company performs an annual review of significant finite-lived identified intangible assets to determine whether facts and circumstances indicate that the carrying amount may not be recoverable. These reviews can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company’s business strategy and its forecasts for specific product lines. Impairment of long-lived assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Assets are categorized and evaluated for impairment at the lowest level of identifiable cash flows. In the event that the sum of the expected future undiscounted cash flows expected to be generated by the long-lived assets is less than the carrying amount of such assets, an impairment charge would be recognized and the assets would be written down to their estimated fair values. The Company did not record any impairment of long-lived assets for any of the periods presented. Research and development, net Research and development costs are expensed as incurred, and consist primarily of personnel, facilities, equipment, and supplies for research and development activities. The Company follows the provisions of ASC 985, Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed, which requires that software development costs incurred in conjunction with development be charged to research and development expenses until technological feasibility is established. The technological feasibility is established upon completion of a working model. The costs incurred by the Company between technological feasibility and general release to the public have been insignificant. Accordingly, all research and development costs have been expensed as incurred. The Company enters into best-efforts nonrefundable, non-recurring engineering (“NRE”) arrangements pursuant to which the Company is reimbursed for a portion of the research and development expenses attributable to specific development programs. The Company does not receive any additional compensation or royalties upon completion of such projects and the potential customer does not commit to purchase the resulting product in the future. The participation reimbursement received by the Company does not depend on whether there are future benefits from the project. All intellectual property generated from these arrangements is exclusively owned by the Company. Participation in expenses for research and development projects are recognized on the basis of the costs incurred and are netted against research and development expenses in the consolidated statements of operations and comprehensive income (loss). Research and development reimbursements of $89 million, $58 million, and $54 million were offset against research and development costs in the years ended December 30, 2023, December 31, 2022, and December 25, 2021, respectively. Derivatives and hedging Beginning in 2021, as part of Intel’s corporate hedging program, Intel is hedging forecasted cash flows denominated in Israeli Shekel (“ILS”) related to the Company. ILS is the largest operating expense currency of the Company. Intel combines all of its ILS exposures, and as part of Intel’s hedging program enters into hedging contracts to hedge Intel’s combined ILS exposure. Derivative gains and losses attributed to these consolidated financial statements are recorded under accumulated other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects the statement of operations. During the fourth quarter of 2022, the Company de-designated its remaining cash flow hedges for forecasted operating expenses denominated in ILS and will no longer participate in the hedging services agreement with Intel. As the hedged transactions and cash flows related to the outstanding instruments are expected to occur as originally forecasted, the associated gains and losses deferred in accumulated other comprehensive income (loss) on the Company’s consolidated balance sheet were reclassified into earnings in the same period or periods during which the originally hedged transactions affect earnings. Any subsequent changes in the fair value of the outstanding derivative instruments after the de-designation and termination of hedge accounting, were immediately reflected in operating expenses. As of December 30, 2023, there are no outstanding hedging instruments and all of the related accumulated other comprehensive income (loss) was reclassified into the statement of operations and comprehensive income (loss). The notional amount and fair value of derivatives outstanding at Intel on behalf of Mobileye were: As of December 30, December 31, U.S. dollars in millions 2023 2022 Notional amount of derivatives $ — $ 93 Fair value of derivatives receivable from (payable to) Intel $ — $ (9) The change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging was as follows: Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Other comprehensive income (loss) before reclassifications $ — $ (33) $ 18 Amounts reclassified out of accumulated other comprehensive income (loss) 10 18 (13) Tax effects (1) 1 — Other comprehensive income (loss), net $ 9 $ (14) $ 5 Revenue recognition The Company recognizes revenue when performance obligations are satisfied as evidenced by the transfer of control of the Company’s products or services to customers. Substantially all of the Company’s revenue is derived from product sales. In accordance with contract terms, revenue for product sales is recognized at the time of product shipment from the Company’s facilities, as determined by the agreed upon ‘ex-works’ shipping terms which specify that title and risks will pass to the customer upon delivery at the Company’s warehouse. Revenue for product sales to resellers and distributors is recognized at the time of delivery of products to the resellers and distributors. The Company measures revenue based on the amount of consideration the Company expects to be entitled to in exchange for products or services. Variable consideration is estimated and reflected as an adjustment to the transaction price. The Company determines variable consideration, which consists primarily of various volume rebates, by estimating the most likely amount of consideration the Company expects to receive from the customer. Volume rebates earned by customers are offset against their receivable balances. Rebates earned by customers when they do not have outstanding receivable balances are recorded within other current liabilities. Substantially all of the Company’s contracts do not include right of return or acceptance provisions. Revenue is recognized net of any taxes invoiced to customers, which are subsequently remitted to governmental authorities. Any shipping and handling costs related to the fulfillment of sales are included in cost of revenue. Sales of the Company’s products regularly include warranties which provides the customer with assurance that the products delivered will perform in accordance with agreed-upon specifications. These standard warranties are assurance type warranties and do not offer any services in addition to the assurance that the product will continue working as specified. Therefore, the warranties are not considered separate performance obligations. The Company is generally the principal in a transaction and, therefore, primarily records revenue on a gross basis. When the Company is a principal in a transaction, it has determined that it controls the ability to direct the use of the product prior to transfer to a customer, is primarily responsible for fulfilling the promise to provide the product or service to the customer, has discretion in establishing prices, and ultimately controls the transfer of the product or services provided to the customer. Advertising expenses Advertising expenses are charged to sales and marketing on the consolidated statements of operations and comprehensive income (loss) as incurred. Advertising expenses for the years ended December 30, 2023, December 31, 2022, and December 25, 2021 amounted to $4 million, $3 million and $2 million, respectively. Share-based compensation Prior to the completion of the Mobileye IPO, the Company’s employees participated in Intel’s equity incentive plans and were granted options and restricted stock units (“RSUs”) on Intel’s common shares. In connection with the Mobileye IPO, the Company approved the Mobileye Global Inc. 2022 Equity Incentive Plan (the “2022 Plan”) which allows the compensation committee of the Company to make equity-based incentive awards to our employees, consultants and outside directors. Equity awards granted to employees are accounted for using the estimated grant date fair value. The Company estimates the fair value of employee stock options to purchase shares of Intel common stock with a service condition using an option pricing model at the date of grant and values RSUs based on the market value of the underlying share of Intel or Mobileye common stock (as applicable) at the date of grant. The Company recognizes share-based compensation expense for the value of its awards, which have graded vesting based on service conditions, using the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. Income Taxes The provision for income tax consists of income taxes in the various jurisdictions where the Company is subject to taxation, primarily the United States and Israel. The Company computes the provision for income taxes under the asset and liability method prescribed by the Financial Accounting Standards Board (“FASB”) Guidance ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in these consolidated financial statements. Under this method, deferred tax assets and liabilities, resulting from temporary differences between the financial reporting and tax bases of assets and liabilities, are measured as of the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realization of deferred tax assets depends upon the existence of sufficient taxable income, of appropriate character, within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when the Company determines, based on available information, that it is more likely than not that deferred tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. The Company records accruals for uncertain tax positions when the Company believes that it is more likely than not that a tax position will not be sustained on examination by tax authorities based on the technical merits of the position. The Company adjusts these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. During the years presented in the consolidated financial statements, certain components of the Company’s business operations were included in the consolidated US domestic income tax return filed by the Company’s Parent. The Company also files various foreign income tax returns on a separate basis, distinct from its Parent. The income tax provision included in the Company’s consolidated financial statements has been calculated using the separate return method, as if the Company had filed its own tax returns. The Company has entered into a Tax Sharing Agreement with its Parent that establishes the amount of cash payable for the Company’s share of the tax liability owed on consolidated tax return filings with its Parent. Any differences between taxes currently payable to the Company’s Parent under the Tax Sharing Agreement and the current tax provision computed on a separate return basis, is reflected as adjustments to additional paid-in capital in the consolidated statement of changes in equity and financing activities within the consolidated statement of cash flows. For additional information regarding the Tax Sharing Agreement, see Note 9 of the Notes to Consolidated Financial Statements. The Company presents tax loss and tax credit carry-forward attributes under the separate return method approach. Such tax attributes may not be benefited in the same period as the Company’s Parent on a consolidated tax return. As a result, there are inherent differences between the Company’s separate tax return method approach and certain actual tax returns filed on a consolidated basis with Intel. For further detail regarding income tax, refer to Note 8 Income Taxes. Provision for warranties The Company provides warranties for its products, which vary with respect to each contract and in accordance with the nature of each specific product. The warranty terms vary from one to three years, with the vast majority of the Company’s products being subject to a warranty period of three years. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time revenue is recognized. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Provision for warranties is included in other current liabilities on the consolidated balance sheets. Provision for warranties as of December 30, 2023 and December 31, 2022, as well as warranty expenses for the each of the years presented were not material. Loss contingencies The Company is currently involved in commercial claims within the ordinary course of business. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the loss can be reasonably estimated, the Company accrues a liability for the estimated loss. When accruing these costs, the Company recognizes an accrual for an amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other, the Company accrues for the minimum estimated loss within the range. The Company discloses contingencies when it believes that a loss is not probable, but reasonably possible. Management believes that there are no current matters that would have a material effect on the Company’s consolidated balance sheets, statement of operations or cash flows. Legal fees are expensed as incurred. Leases The Company accounts for leases in accordance with ASC 842, Leases, which requires lessees to recognize leases on the consolidated balance sheets and disclose key information about leasing arrangements. Leases primarily consist of real estate property and vehicles and are classified as operating leases with fixed payment terms. Certain operating leases provide for annual increases to lease payments based on an index or a rate. The Company determines if an arrangement is a lease, or contains a lease, at inception and records the leases upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are included in other long-term assets, other current liabilities, and other long-term liabilities on the consolidated balance sheet. Lease expenses for the operating leases are recognized on a straight-line basis over the lease term and are included in operating expenses in the consolidated statements of operations and comprehensive income (loss). Options to extend or terminate the lease are taken into account when it is reasonably certain at the commencement date that such options will be exercised. The Company elected to apply the short-term lease exemption for lease with a non-cancelable period of twelve months or less. Additionally, the Company has lease agreements with lease and non-lease components. The non-lease components are accounted for separately and not included in the leased assets and corresponding liabilities. On the commencement date, lease payments that include variable lease payments dependent on an index or a rate (such as the Consumer Price Index or a market interest rate), are initially measured using the index or rate at the commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate because the interest rate implicit in most of its leases is not readily determinable. Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Undistributed earnings (loss) are allocated proportionally to Class A and Class B stockholders as both classes are entitled to share equally, on a per share basis, in dividends and other distributions. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the per |
OTHER FINANCIAL STATEMENT DETAI
OTHER FINANCIAL STATEMENT DETAILS | 12 Months Ended |
Dec. 30, 2023 | |
OTHER FINANCIAL STATEMENT DETAILS | |
OTHER FINANCIAL STATEMENT DETAILS | NOTE 3 OTHER FINANCIAL STATEMENT DETAILS Inventories As of December 30, December 31, U.S. dollars in millions 2023 2022 Raw materials $ 46 $ 41 Work in process 1 — Finished goods 344 72 Total inventories $ 391 $ 113 Inventory write-downs and write-offs totaled $2 million, $0 million and $1 million for the years ended December 30, 2023, December 31, 2022, and December 25, 2021, respectively. Property and equipment, net As of December 30, December 31, U.S. dollars in millions 2023 2022 Computers, electronic equipment and software $ 167 $ 124 Vehicles 14 13 Office furniture and equipment 11 4 Buildings 315 — Leasehold improvements 37 22 Construction in process — 302 Total property and equipment, gross 544 465 Less: accumulated depreciation (97) (81) Total property and equipment, net $ 447 $ 384 Depreciation expenses totaled $39 million, $23 million, and $17 million for the years ended December 30, 2023, December 31, 2022, and December 25, 2021, respectively. During 2023, the Company derecognized the cost and accumulated depreciation of fully depreciated assets in the amount of $23 million. The construction of our new campus in Israel is substantially complete and therefore we have classified the related costs from ‘construction in process’ to the relevant asset types as well as commenced depreciation in the fourth quarter of 2023. Substantially all of the Company’s property and equipment were located in Israel as of December 30, 2023 and December 31, 2022. Royalty bearing agreements The Company has entered into a number of license and technology transfer agreements with third parties. The agreements allow the Company to utilize and leverage the third parties’ technology in order to integrate it into the Company’s products. In consideration thereof, the Company is obligated to pay royalties to each of the third parties, for each unit of the applicable integrated product sold to other parties. As a result, during the years ended December 30, 2023, December 31, 2022, and December 25, 2021, the Company recorded expenses of approximately $9 million, $8 million, and $7 million, respectively. These expenses were classified as a component of cost of revenue. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 30, 2023 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | NOTE 4 EMPLOYEE BENEFITS In Israel Severance Israeli labor laws generally require severance payments upon dismissal of an employee or upon termination of employment in certain other circumstances. The following plans relate to the Company’s employees in Israel. Severance pay liability with respect to Israeli employees is calculated pursuant to Israeli Severance Pay Law based on the most recent salary of the employees, multiplied by the number of years of employment as of the period-end date. The Company records an expense for the increase in its severance liability, net of earnings (losses) from the related severance pay funds. The liabilities are presented on an undiscounted basis and included on the consolidated balance sheets as a long-term employee benefit. Severance pay liabilities as of December 30, 2023 and December 31, 2022 were $56 million and $56 million, respectively. The Company’s liability for all of its Israeli employees is covered by monthly deposits with severance pay funds. The value of the deposited funds is based on the cash surrender value of these policies and includes earnings (or losses) accumulated through the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligations pursuant to Israeli Severance Pay Law or labor agreements. Severance pay funds, which are included in other long-term assets, were $45 million and $42 million as of December 30, 2023 and December 31, 2022, respectively. The majority of the Company’s liability for severance pay is covered by the provisions of Section 14 of the Israeli Severance Pay Law (“Section 14”). Under Section 14, employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, contributed by the Company on their behalf to their insurance funds. Payments by the Company in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees under Section 14 and the related deposits are not recorded as assets on the consolidated balance sheets. Other long-term employee benefits Intel has a defined benefit plan for an adaptation grant for certain Intel aligned employees. The adaptation grant includes a salary for three months and may be paid to those employees upon retirement. The benefits under the adaptation grant are calculated based on years of service and pensionable earnings. The vested benefit obligation for a defined benefit plan is the actuarial present value of the vested benefits to which the employee is currently entitled based on the employee’s expected date of separation or retirement. The adaptation grant is not part of Mobileye’s compensation and benefit plans and therefore the related obligation was eliminated through parent net investment upon the recruitment of these Intel Aligned Employees into the Company during 2022. For the year ended December 25, 2021 the periodic benefit costs were $2 million, the discount rate was 3.1% , and the assumed rate of compensation increase was 4.0% . Non-Israeli Defined Contribution Plans Most of the Company’s non-Israeli subsidiaries provide defined contribution plans for the benefit of their employees. The plans primarily provide for Company matching contributions based upon a percentage of the employees’ contributions. The Company’s contributions for each of the years presented under such plans were not material. |
LEASES
LEASES | 12 Months Ended |
Dec. 30, 2023 | |
LEASES | |
LEASES | NOTE 5 LEASES The Company’s operating leases consist of offices and vehicles and the lease term varies between 3 - 7 years . Some of the Company’s leases include options to extend the lease term for periods of up to five years each. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. During 2023 and 2022, the Company has entered into new, non-cancellable, operating lease agreements of offices and vehicles. Lease expenses for operating lease payments are recognized on a straight-line basis over the lease term. Certain operating leases provide for annual increases to lease payments based on an index or a rate. The Company calculates the present value of future lease payments based on the index or rate at the lease commencement date. Differences between the estimated lease liability and actual payments are expensed as incurred and are not material for all periods presented. The lease agreements generally do not contain any residual value guarantees or restrictive covenants. Operating lease expense for the years ended December 30, 2023, December 31, 2022, and December 25, 2021 were $19 million, $13 million, and $11 million, respectively. The Company does not have any finance leases. The balances for the operating leases, which are presented on the consolidated balance sheets in other long-term assets, other current liabilities and long-term liabilities, were as follows: As of December 30, December 31, U.S. dollars in millions 2023 2022 Operating lease right-of-use assets $ 49 $ 57 Operating lease liabilities: Current portion of lease liabilities 12 13 Long-term lease liabilities 39 45 Total operating lease liabilities $ 51 $ 58 As of December 30, 2023 and December 31, 2022, the weighted average remaining lease term was 4.67 and 5.45 years, respectively, and the weighted average discount rate was 4.67% and 4.24%, respectively. Supplemental information related to operating leases was as follows: Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Operating cash outflows from operating leases $ 16 $ 12 $ 12 Right-of-use assets recognized in exchange for lease obligations $ 8 $ 48 $ 4 Maturities of operating lease liabilities were as follows: December 30, U.S. Dollars in millions 2023 2024 $ 14 2025 13 2026 10 2027 9 2028 and thereafter 10 Total operating lease payments 56 Imputed interest (5) Present value of lease liabilities $ 51 During 2017, the Company obtained the right to use land in Jerusalem from the Israeli government for the construction of a new research and development and innovation center that will also host the Company’s headquarters (the new Jerusalem Campus). This land lease was fully prepaid and no lease liability was recorded. This operating lease right of use asset is carried at cost and amortized using the straight-line method. This operating lease right of use asset, net of amortization, was $12 million and $11 million as of December 30, 2023 and December 31, 2022, respectively, and is included in other long-term assets on the consolidated balance sheets. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 30, 2023 | |
EQUITY | |
EQUITY | NOTE 6 EQUITY 1. Common Stock and Voting Rights We have two classes of authorized common stock: Class A common stock, which is listed on Nasdaq under the symbol “MBLY.”, and Class B common stock which is not listed or traded on any stock exchange and is held by Intel. Both classes of common stock have a par value of $0.01 per share. The rights of the holders of our Class A common stock and Class B common stock are identical, except with respect to voting, transfer, and conversion rights. Each share of our Class A common stock is entitled to one vote. Each share of our Class B common stock is entitled to ten votes and is convertible at any time into one share of our Class A common stock, subject to certain conditions. Intel continues to directly, or indirectly, hold all of the Class B common stock of Mobileye, which represents approximately 88.3% of our outstanding common stock and 98.7% of the voting power of our common stock as of December 30, 2023. For more information on the reorganization and the Mobileye IPO, see Note 1. 2. Dividends On May 12, 2022, Mobileye Group declared and paid a dividend in an aggregate amount of $336 million to Intel, net of $14 million of cash paid to tax authorities to settle related tax obligations. In October 2022, the Company made a capital distribution in cash to Intel in the amount of $1.1 million. 3. Mobileye Plan In connection with the Mobileye IPO, the Company approved the Mobileye Global Inc. 2022 Equity Incentive Plan (the “2022 Plan”). Equity awards under the 2022 Plan are granted for Class A shares and vest upon the satisfaction of a service-based vesting condition, mostly over a service periods of three years. The RSU granted during 2023 and 2022 also include 0.4 million and 2.1 million RSUs granted to the Company’s Chief Executive Officer, in a total value of $14 million and $44 million, respectively, which will vest over a service period of up to five years. With respect to Israeli employees, the 2022 Plan is designed to grant awards pursuant to the provision of Section 102 of the Israeli Income Tax Ordinance. In accordance with the capital gains treatment elected by the Company, the Company is not allowed for tax purposes to deduct the amounts credited to employees. This includes amounts recorded as salary benefits in the Company’s consolidated financial statements, in respect of equity granted to employees under the 2022 Plan, with the exception of the benefit component, if any, on the grant date. Restricted Stock Units The RSU activity for the years ended December 30, 2023 and December 31, 2022 for RSUs granted to the Company’s employees under the 2022 Plan was as follows: Weighted average grant Number of RSUs date fair value per share In thousands U.S. dollars Outstanding as of December 25, 2021 — $ — Granted 12,570 21 Forfeited (6) 21 Outstanding as of December 31, 2022 12,564 21 Granted 6,782 40 Vested (4,240) 21 Forfeited (328) 26 Outstanding as of December 30, 2023 14,778 $ 30 As of December 30, 2023, the unrecognized compensation cost related to all unvested RSUs granted under the Company’s 2022 Plan, was $313 million, which is expected to be recognized as expense over a weighted-average period of 2.18 years. Intel Plan Prior to the Mobileye IPO, since 2017, employees of the Company had been incentivized and rewarded through the grant of Intel equity awards under the Intel Corporation 2006 Equity Incentive Plan (the “2006 Plan”). The 2006 Plan provides for the grant of equity awards covering Intel common stock to eligible employees of the Company and contain only a service condition. The equity awards granted generally vest over the course of three years from the grant date. With respect to Israeli employees, the 2006 Plan is designed to grant awards pursuant to the provision of Section 102 of the Israeli Income Tax Ordinance. In accordance with the capital gains treatment elected by the Company, the Company is not allowed for tax purposes to deduct the amounts credited to employees. This includes amounts recorded as salary benefits in the Company’s consolidated financial statements, in respect of equity granted to employees under the 2006 Plan, with the exception of the benefit component, if any, on the grant date. Options Outstanding and exercisable options for Intel’s common stock under Intel’s 2006 Plan as of December 30, 2023 were as follows: Outstanding Exercisable Weighted average Weighted Weighted Number of remaining average Number of average Exercise price options contractual life exercise price options exercise price U.S. dollars In thousands In years U.S. dollars In thousands U.S. dollars $ 4.0 - 21.6 59 2.1 $ 6.1 52 $ 4.0 $ 22.4 - 24.3 8 0.1 23.5 8 23.5 $55.2 68 0.2 55.2 68 55.2 Total 135 1.0 $ 31.7 128 $ 32.2 The option activity for the years ended December 30, 2023, December 31, 2022, and December 25, 2021 for options granted to Company’s employees for Intel’s common stock was as follows: Weighted average Weighted Aggregated Number of remaining average intrinsic options contractual Life exercise price value(1) In thousands In years U.S. dollars U.S. dollars in millions Options outstanding as of December 26, 2020 6,391 2.4 $ 29.2 $ 114 Exercised (2,807) — 29.3 — Forfeited (6) — 24.5 — Options outstanding as of December 25, 2021 3,578 1.5 29.2 79 Exercised (1,308) — 32.8 — Options outstanding as of December 31, 2022 2,270 0.8 27.1 1 Exercised (36) — 22.3 — Expired (2,099) — 26.9 — Options outstanding as of December 30, 2023 135 1.0 $ 31.7 $ 3 Options exercisable as of December 30, 2023 128 1.0 $ 32.2 $ 3 (1) (2) RSUs The RSU activity for the years ended December 30, 2023, December 31, 2022, and December 25, 2021 for RSUs granted to Company’s employees for Intel’s common stock was as follows: Weighted average grant Number of RSUs date fair value per share In thousands U.S. dollars Outstanding as of December 26, 2020 4,339 $ 44.6 Granted 2,935 47.8 Vested (1,761) 44.0 Forfeited (235) 46.4 Outstanding as of December 25, 2021 5,278 46.5 Granted 3,758 43.7 Vested (2,935) 45.9 Forfeited (409) 48.1 Outstanding as of December 31, 2022 5,692 44.8 Vested (2,690) 45.0 Forfeited (291) 46.1 Outstanding as of December 30, 2023 2,711 $ 44.4 Unrecognized expenses As of December 30, 2023, the unrecognized compensation cost related to stock options and RSUs granted under the Intel 2006 Plan was $82 million, which will be recognized over a weighted average period of 1.02 years. Share-based compensation expense summary (for both Mobileye and Intel Plans) Expenses recognized Share-based compensation expenses included in the consolidated statements of operations and comprehensive income (loss) were as follows: Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Cost of revenue $ 2 $ 2 $ 1 Research and development, net 212 153 77 Sales and marketing 7 5 4 General and administrative 31 14 15 Total share-based compensation $ 252 $ 174 $ 97 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 30, 2023 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | NOTE 7 EARNINGS (LOSS) PER SHARE Before the Mobileye IPO, Intel held directly or indirectly 100 shares of common stock of Mobileye, with a par value of $0.01 per share, that were issued and outstanding In connection with the Mobileye IPO, we issued 41,000,000 shares of our Class A common stock to the public at a public offering price of $21.00 per share and an additional 4,761,905 Class A shares at a private placement. The Mobileye IPO closed on October 28, 2022. On November 1, 2022, we closed the sale of an additional 6,150,000 shares pursuant to the exercise of the underwriters’ over-allotment option. In accordance with ASC 260, the Class A shares issued in connection with the Mobileye IPO are included in earnings (loss) per share calculations for periods subsequent to the closing of the Mobileye IPO and are not included in the earnings (loss) per share calculations for periods prior to the closing of the Mobileye IPO. On June 12, 2023, we completed the Secondary Offering, pursuant to which 38,500,000 shares of Class B common stock held by Intel were converted into an equal number of shares of Class A common stock. Accordingly, as of December 30, 2023, we have 711,500,000 Class B shares, all held by Intel, and 94,652,348 Class A shares, both of which are utilized for the calculation of basic and diluted EPS. The outstanding Class A shares also include shares issued upon vesting of outstanding RSUs, see note 6. For the years ended December 30, 2023 and December 31, 2022, the computation of diluted earnings (loss) per share attributable to common stockholders does not include 5.9 million and 0.8 million potential common shares, respectively, related to restricted stock units granted under the 2022 Plan to the Company’s employees, as the effect of their inclusion would have been anti-dilutive. The following table summarizes the calculation of basic and diluted earnings (loss) per share for the periods presented: Year ended December 30, December 31, December 25, In millions, except per share amounts 2023 2022 2021 Numerator: Net income (loss) $ (27) $ (82) $ (75) Denominator: Weighted average common shares - basic and diluted 805 759 750 Earnings (loss) per share: Basic and diluted $ (0.03) $ (0.11) $ (0.10) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 30, 2023 | |
INCOME TAXES | |
INCOME TAXES | NOTE 8 INCOME TAXES Loss before income taxes included in the consolidated statements of operations and comprehensive income (loss) Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Income (loss) before taxes: U.S $ (13) $ (49) $ (96) Non-U.S 29 17 39 Total income (loss) before income taxes $ 16 $ (32) $ (57) Benefit (provision) for income taxes included in the consolidated statements of operations and comprehensive income (loss) Benefit (provision) for income taxes for the years ended December 30, 2023, December 31, 2022, and December 25, 2021 was comprised of the following: Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Current income taxes: U.S $ — $ — $ — Non-U.S (58) (67) (47) Total current provision for income taxes (58) (67) (47) Deferred income taxes: U.S. (28) (28) (30) Non-U.S. 43 45 59 Total deferred benefit (provision) for income taxes 15 17 29 Total benefit (provision) for income taxes $ (43) $ (50) $ (18) Effective income tax rate reconciliation The difference between the tax provision at the statutory federal income tax rate and the benefit (provision) for income taxes as a percentage of loss before income taxes (effective tax rate) for each year was as follows: Year ended December 30, December 31, December 25, 2023 2022 2021 % Statutory federal income tax rate 21.0 21.0 21.0 Increase (reduction) in rate resulting from: Foreign rate differential 2.7 (1.2) (1.9) Technology incentives – current (568.7) 312.7 183.1 Technology incentives – deferred 461.5 (230.6) (116.4) U.S. branch taxation of foreign operations 243.9 (127.3) (54.4) Changes in uncertain tax position, net 42.1 16.1 (0.3) Share-based compensation related adjustments (2.4) (0.5) (13.7) Changes in valuation allowance 43.1 (151.9) (50.0) Non-deductible expenses and other 25.4 (6.5) 1.0 Withholding taxes, net of credit — 12.1 — Effective tax rate 268.6 (156.1) (31.6) In fiscal years ended 2023 and 2022, certain Israeli operations are taxable in the U.S. as branch activities due to restructuring activities prior to Mobileye IPO. As a result, these operations are taxed both in the U.S. and locally in Israel. For U.S. tax purposes, due to cumulative losses, deferred tax assets have not been benefited which results in a residual tax expense associated with a deferred tax liability recorded for goodwill. The increase in the effective tax rate for the year ended December 30, 2023, as compared to the year ended December 31, 2022, is primarily driven by the jurisdictional composition of our taxable earnings based on operational results and an increase in unbenefited U.S. deferred tax assets subject to a valuation allowance. In Israel, the Company benefits from a reduced tax rate under the Special Preferred Technological Enterprise status under the Law for the Encouragement of Capital Investments, 1959, or the Investment Law. Under the Investment Law, income derived by Preferred Companies from ‘Special Preferred Technological Enterprises’ (as defined in the 2017 Amendment), would be subject to 6% tax rate on income deriving from intellectual property, subject to a number of conditions being fulfilled, including a minimal amount or ratio of annual research and development expenditures and research and development employees, as well as having at least 25% of annual income derived from exports. Special Preferred Technological Enterprise is defined as an enterprise which meets the aforementioned conditions and for which total consolidated revenue of its parent company and all subsidiaries are more than ILS 10 billion. Deferred income taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and increase in unbenefited U.S. deferred tax assets subject to a valuation allowance. Due to the fact that certain Israeli operations were taxable in the U.S. as branch activities, the Company recognized in the years ended December 30, 2023 and December 31, 2022 the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for U.S. income tax purposes which resulted in a net deferred tax liability after evaluation of deferred tax assets for realizability. Significant components of the Company’s deferred tax assets and deferred tax liabilities were as follows: December 30, December 31, U.S. dollars in millions 2023 2022 Deferred tax assets: Share-based compensation $ 105 $ 89 Provisions for employee benefits 8 7 Net operating losses carryforward 103 142 Research and development expenses 455 283 Operating lease liabilities 12 13 Foreign tax credit and deferrals 13 33 Intangible assets 179 147 Other 15 3 Gross deferred tax assets 890 717 Valuation allowance (579) (533) Total deferred tax assets 311 184 Deferred tax liabilities: Intangible assets (126) (161) Goodwill (322) (172) Right of use assets (11) (13) Total deferred tax liabilities (459) (346) Net deferred tax liabilities $ (148) $ (162) Changes in valuation allowance for deferred tax assets were as follows: Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Valuation allowance at beginning of year $ 533 $ 229 $ — Additions — — 185 Change in valuation allowance 46 304 44 Valuation allowance at end of year $ 579 $ 533 $ 229 Realization of deferred tax assets is based on the Company’s judgment and various factors including reversal of deferred tax liabilities, the ability to generate future taxable income in jurisdictions where such assets have arisen, and potential tax planning strategies. A valuation allowance is recorded in order to reduce the deferred tax assets to the amount expected to be realized in the future. The valuation allowance for the years presented are primarily related to U.S. branch deferred tax assets not currently expected to be realized given that the Company has sustained recent losses based on the separate return method. For purposes of these financial statements, the income tax expense and deferred tax balances have been prepared as if the Company filed income tax returns on the separate return method. As of December 30, 2023, the Company has U.S. net operating loss carryforwards of $144 million, subject to separate return limitation year rules, which were generated before the Company joined its Parent’s consolidated income tax return on July 17, 2021. The Company also has $139 million of separate return method net operating loss carryforwards that were generated after joining its Parent’s consolidated income tax filing group which have been utilized by its Parent. These net operating losses generated by the Company that have been utilized as part of the Parent consolidated income tax return filings but have not been utilized by the Company under the separate return method approach, have been reflected in these consolidated financial statements because the Company will recognize a benefit for the separate return method net operating losses when determined to be realizable. The Company has a non-U.S. net operating loss carryforward of $183 million as of December 30, 2023. This net operating loss carryforward amount relates primarily to operations in Israel and has an indefinite carry-forward period. The Company intends to indefinitely reinvest undistributed foreign earnings into foreign operations and expects future U.S. cash generated to be sufficient to meet future U.S. cash needs. Therefore, the Company has not provided for deferred income taxes on undistributed foreign earnings. In making this determination, the Company evaluates both near-term and long-term fiscal needs of its U.S. domestic operations and its foreign subsidiaries. The estimation of the unrecognized deferred tax liability on undistributed foreign earnings is not practicable for the consolidated balance sheets dates presented. Uncertain tax positions A reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions was as follows: Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Balance at the beginning of the year $ — $ 4 $ 4 Changes in balances related to tax positions taken during current period 7 — — Settlements with taxing authorities — — — Lapse of statute of limitations — (4) — Balance at the end of the year $ 7 $ — $ 4 If the remaining balance of unrecognized tax benefits were recognized in a future period, it would result in a tax benefit of $7 million as of December 30, 2023. The balance of uncertain tax positions, which also includes accrued penalties and interest, is included in other long-term liabilities on the consolidated balance sheets. There are no material changes anticipated in the uncertain tax positions in the next twelve months. The Company files income tax returns in the U.S., Israel, and in other certain foreign jurisdictions. The Company is no longer subject to U.S. and Israeli tax examinations for years prior to 2020 and 2018, respectively. |
RELATED PARTIES TRANSACTIONS
RELATED PARTIES TRANSACTIONS | 12 Months Ended |
Dec. 30, 2023 | |
RELATED PARTIES TRANSACTIONS | |
RELATED PARTIES TRANSACTIONS | NOTE 9 RELATED PARTY TRANSACTIONS The Company has entered into a series of related party arrangements with Intel. The arrangements were as follows: 1. Loan arrangements The Company entered into a series of bilateral lending/borrowing arrangements with Intel. The purposes of the facilities are to enable bilateral cash movements between the parties. The arrangements are denominated in U.S dollars. In 2017, Intel along with the Company, entered into a bilateral lending/borrowing arrangement (“Arrangement 1”) to make available to either party up to an aggregate principal amount of $1.5 billion. Arrangement 1 has a mechanism of automatic renewal for additional periods of one year. In 2021, Arrangement 1 was amended to increase the capacity from $1.5 billion to $1.8 billion, and was automatically renewed to December 2022. On October 25, 2022, Arrangement 1 was terminated. In 2017, Intel along with the Company, entered into a bilateral lending/borrowing arrangement (“Arrangement 2”) to make cash available to either party up to an aggregate principal amount of $750 million. Arrangement 2 has a mechanism for automatic renewal for additional periods of one year each. In March 2022, Arrangement 2 was amended to increase the aggregate principal amount from $750 million to $1.0 billion and the maturity date was extended to March 2023. In March 2023, Arrangement 2 was terminated. In March 2022, due to reference rate reform, Arrangement 1 and Arrangement 2 were amended to change the interest rate from LIBOR based to SOFR based. The modification was accounted for as if it is not substantial in accordance with the expedient for ASC 470 and an updated effective interest rate was calculated to reflect the change in terms. There was no gain or loss recognized for the year ended December 31, 2022. In 2021, the Company and Intel entered into a bilateral lending/borrowing arrangement (“Arrangement 3” and together with Arrangement 1 and Arrangement 2, the “Bilateral Loan Arrangements”) to make cash available to either party up to an aggregate principal amount of $100 million. Arrangement 3 has a maturity date of July 2022 with a mechanism of automatic renewal for additional periods of one year. In March 2022, Arrangement 3 was amended to increase the aggregate principal amount available to draw from $100 million to $500 million. The interest rate is based on an applicable margin of 0.0% with an option for Intel to elect to increase or decrease the applicable margin on or after the first day of the 2022 fiscal year. If the election to increase the applicable margin is applied, the spread adjustment would be reflective of the difference between three-month LIBOR and the term Secured Overnight Financing Rate (“SOFR”). On October 25, 2022, Arrangement 3 was terminated. The total outstanding balance under the Bilateral Loan Arrangements was zero for both December 30, 2023 and December 31, 2022. Interest income recognized by the Company totaled $0 million, $18 million and $3 million for the years ended December 30, 2023, December 31, 2022 and December 25, 2021, respectively. 2. Stock Compensation Recharge Agreement The Company entered into a stock compensation recharge agreement with Intel, which requires the Company to reimburse Intel for certain amounts relating to the value of share-based compensation provided to the Company’s employees for RSUs or stock options exercisable in Intel stock. The reimbursement amounts recorded as an adjustment to additional paid-in capital (and to parent net investment prior to the Mobileye IPO) in the consolidated statement of changes in equity were $100 million, $118 million and $162 million for the year ended December 30, 2023, December 31, 2022 and December 25, 2021, respectively. As for the inclusion of the Company’s employees in Intel’s equity incentive plan, see Note 6. 3. Hedging services Intel centrally hedges its exposure to changes in foreign exchange rates. At the beginning of 2021, the Company entered into a hedging services agreement with Intel, pursuant to which the Company is entitled to a certain allocation of the gains and obligated to a certain allocation of the losses arising from the execution of the hedging contracts. In October 2022, we de-designated our outstanding hedge instruments and will no longer participate in the hedging services agreement with Intel. As of October 25, 2022, the Company is no longer a party to this agreement. For further information, see Note 2, Significant Accounting Policies 4. Development services Intel entered into agreements with the Company to provide certain development services, including research, technical work on technology, products and solutions, construction and ancillary administrative services. The Company paid for these services on a quarterly basis. These costs are included in the consolidated statements of operations and comprehensive income (loss) primarily on a specific and direct attribution basis, as described in Note 2. Following our recruitment of certain employees relating to the Mobileye business from Intel during 2022, and the Intercompany Agreements that came into effect upon Mobileye IPO, this agreement was terminated on October 25, 2022. 5. Lease agreements Under lease agreements with Intel, the Company leases office space in Intel’s buildings. The costs are included in the consolidated statements of operations and comprehensive income (loss) primarily on a specific and direct attribution basis, as described in Note 2. The leasing costs for the years ended December 30, 2023, December 31, 2022 and December 25, 2021 were $4 million, $3 million and $1.5 million, respectively. 6. Other services to a related party The Company reimbursed its Chief Executive Officer for reasonable travel related expenses incurred while conducting business on behalf of the Company. For the years ended December 30, 2023, December 31, 2022, and December 25, 2021, travel related reimbursements were $1.7 million, $1.0 million and $1.1 million, respectively. 7. Reorganization and the Mobileye IPO In connection with the Mobileye IPO, which was completed in October 2022, we have consummated the following transactions and agreements. Equity transaction in connection with the legal purchase of Moovit entities On May 31, 2022, we entered into an agreement with Intel pursuant to which we legally purchased from Intel 100% of the issued and outstanding equity interests of the Moovit entities for an aggregate amount of $900 million that was paid in December 2022 to Intel using cash that we concurrently received from Intel’s payment of such amount it owed us under the Bilateral Loan Arrangements. Moovit’s operations were already reflected as part of the Mobileye Group as further detailed in Note 1 and, therefore the transaction was treated within equity. Dividend Note On April 21, 2022, Intel and Mobileye Group signed a loan agreement whereby Mobileye Group issued a promissory note to Intel in an aggregate principal amount of $3.5 billion (the “Dividend Note”). The Dividend Note was scheduled to mature on April 21, 2025 and accrued interest at a rate equal to 1.26% per annum, such interest to accrue quarterly. Prior to June 30, 2024, such interest would be paid by being automatically added to the outstanding principal amount of the loan and would thereafter be payable quarterly in cash in arrears and shall also be payable upon any prepayment, whether in whole or in part, to the extent accrued on the amount being prepaid and upon maturity. Under the Dividend Note, Mobileye Group had the right, at its option, on any business day, to prepay the loan, including principal and any accrued interest thereon, in whole or in part without premium or penalty. In November 2022, the Company used approximately $0.9 billion out of the net proceeds from the Mobileye IPO to repay a portion of the indebtedness under the Dividend Note and Intel has contributed to the Company the remaining portion of the Dividend Note (plus related accrued interest) in the amount of $2.6 billion such that no amounts under the Dividend Note remain owed by us to Intel as of December 31, 2022. Interest expense recognized by the Company totaled $24 million for the year ended December 31, 2022. Contribution and Subscription Agreement In connection with the Mobileye IPO, we entered into the Contribution and Subscription Agreement with Intel, pursuant to which Intel transferred to Mobileye Global Inc., collectively as a contribution on existing capital in exchange for 749,999,900 shares of our Class B common stock: (i) 100% of the equity interests of Cyclops Holdings Corporation, such that Cyclops Holdings Corporation became a direct, wholly owned subsidiary of Mobileye Global Inc.; and (ii) the Dividend Note with respect to any principal and accrued interest thereon in excess of the principal amount that we repaid out of the net proceeds that we received from the Mobileye IPO and the Concurrent Private Placement. After the completion of the Mobileye IPO and the Concurrent Private Placement, no amounts under the Dividend Note remain owed by us to Intel. The actual amount of the Dividend Note which was repaid was based upon the amount of net proceeds from the Mobileye IPO that were available after we retained the required $1.0 billion of cash, cash equivalents, or marketable securities that Intel agreed to ensure that we had immediately after completion of the IPO under the Master Transaction Agreement. Intercompany Agreements In connection with the Mobileye IPO, the Company entered into certain intercompany agreements (collectively, the “Intercompany Agreements”), including a Master Transaction Agreement, an Administrative Services Agreement, an Employee Matters Agreement, a Technology and Services Agreement, a LiDAR Product Collaboration Agreement, and a Tax Sharing Agreement, in each case with Intel and certain of its subsidiaries, to outline a framework for the Company’s ongoing relationship with Intel, whereby, among other matters, Intel will continue to provide certain administrative and operational services, including the supply and license of certain technologies, whereby the Company will supply Intel with certain technologies, and whereby Intel’s and the Company’s respective rights, responsibilities and obligations with respect to all tax matters will be governed (including tax liabilities, tax attributes, tax returns and tax audits). The Intercompany Agreements became effective as of the completion of the Mobileye IPO. See below for further detail. Administrative Services Agreement Under the Administrative Services Agreement, Intel provides the Company with administrative and other services. The Company pays fees to Intel for the services rendered based on pricing per service agreed between the Company and Intel. The initial term of the Administrative Services Agreement will expire two years from the completion of the Mobileye IPO and will be extended automatically for successive three-month terms unless one of the parties elects not to renew. We have the right to terminate any of the services provided by Intel under the Administrative Services Agreement at any time upon thirty days prior written notice of termination to Intel, or if Intel fails to perform any of its material obligations under the Administrative Services Agreement and such failure continues for at least thirty days after receipt by Intel of written notice of such failure from Mobileye. The costs incurred under this agreement for the years ended December 30, 2023 and December 31, 2022 were $4 million and $3 million, respectively. Technology and Services Agreement The Technology and Services Agreement provides a framework for the collaboration on technology projects and services between the Company and Intel (“Technology Projects”), and sets out the licenses granted by each party to its respective technology for the conduct of the Technology Projects, provisions relating to the ownership of certain existing technology, the allocation of rights in any new technology created in the course of the Technology Projects, and certain provisions applicable to the development of a certain radar product of the Company. The Technology and Services Agreement will not apply to projects for the development and manufacture of a lidar sensor system for automobiles, for which the LiDAR Product Collaboration Agreement will apply. Pursuant to the Technology and Services Agreement, the Company and Intel will agree to statements of work with additional terms for Technology Projects. The Technology and Services Agreement has a term of two years, and will automatically renew for one-year renewal periods, unless the agreement is terminated for a party’s material breach, a party’s bankruptcy or insolvency, or advance notice of non-renewal is given. The amount incurred under this agreement for the years ended December 30, 2023 and December 31, 2022 were $5 million and $0.4 million, respectively. LiDAR Product Collaboration Agreement The LiDAR Product Collaboration Agreement provides the terms that will apply to the Company’s collaboration with Intel for the development and manufacture of a lidar sensor system for ADAS and AV in automobiles (“LiDAR Project”). On some of the LiDAR programs joint funding will apply between Intel and Mobileye until the end of 2027 whereby Mobileye will bear its own lidar sensor system development costs up to the first $40 million per year and Intel will bear up to $20 million per year of Mobileye’s lidar sensor system development costs that are greater than $40 million per year. The LiDAR Product Collaboration Agreement further provides that Intel will manufacture certain components for the Company to market and sell as part of a FMCW (frequency-modulated continuous wave) lidar sensor system solely for external environment sensing for ADAS and AV in automobiles. The parties intend that for a limited period of up to 5 years, we will have certain exclusive rights for the marketing and selling of the initial FMCW lidar sensor system for defined uses, with annual plans for sales and marketing of the sensor system to be agreed by the parties. The price for the components Intel will manufacture for the Company will be based on a cost-plus model. In addition, the agreement also includes a profit-sharing model under which Mobileye will pay Intel a share of the gross profit for each lidar sensor system or components thereof, based on Intel technology, sold by Mobileye. The LiDAR Product Collaboration Agreement has a term of ten years subject to automatic 24-month renewal periods unless notice of non-renewal is given. Either party may terminate the LiDAR Product Collaboration Agreement for any reason by giving 24-month notice to the other party, and additional termination rights arise if Intel shuts down, sells, or transfers the factory operations for silicon photonics or if we cease lidar development or sale, as well as for a party’s material breach or bankruptcy or insolvency. In 2023, Mobileye opted to pursue a different lidar technology, and as a result, Mobileye and Intel are no longer actively working on developing the LiDAR Project under the LiDAR Product Collaboration Agreement. Mobileye and Intel have begun negotiation of an amendment to the LiDAR Product Collaboration Agreement which contemplates the parties’ cessation of lidar development work and Mobileye’s potential, continued use of certain licenses granted by Intel under the LiDAR Product Collaboration Agreement. In connection with the foregoing, Mobileye would no longer be obligated to share its profits associated with the LiDAR Project with Intel, and Intel would no longer be obligated to provide development services for the LiDAR Project and fund Mobileye’s lidar investments beyond the $40 million per year threshold set forth in the LiDAR Product Collaboration Agreement. Final commercial terms for this amendment remain subject to further negotiation by Mobileye and Intel. There were no amounts received or receivable from Intel under this agreement for the years ended December 30, 2023 and December 31, 2022. Tax Sharing Agreement The Tax Sharing Agreement establishes the respective rights, responsibilities and obligations of the Company and Intel after the completion of the Mobileye IPO with respect to tax matters, including the amount of cash the Company will pay to Intel for its share of the tax liability owed on the consolidated filings in which the Company or any of the Company’s subsidiaries are included, including audit or other tax proceedings. According to the terms of the Tax Sharing Agreement, the Company and Intel will calculate and agree to estimated amounts owed quarterly but final amounts will also be calculated and paid upon consolidated tax return filings. Amounts payable under the Tax Sharing Agreement will be recorded in the same manner as other contractual obligations entered into by the Company. As of December 30, 2023 and December 31, 2022, the related party payable to Intel, pursuant to the Tax Sharing Agreement, was $37 million and $34 million, respectively. The increase in the balance represents the net activity of estimating fiscal year 2023 amounts payable and finalizing 2022 amounts due upon filing of the US consolidated tax return with Intel. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 30, 2023 | |
GOODWILL | |
GOODWILL | NOTE 10 GOODWILL The following table presents the carrying amount of goodwill by segment as of December 30, 2023 and December 31, 2022. As of December 30, December 31, U.S. dollars in millions 2023 2022 Mobileye $ 10,784 $ 10,784 Other 111 111 Total $ 10,895 $ 10,895 During the fourth quarters of 2023 and 2022, we completed our annual impairment assessments. In 2023, we performed a detailed quantitative analysis for the “Other” reporting unit. The quantitative assessment was performed by measuring the reporting unit’s fair value, and showed that no impairment was required. The fair value was estimated using the expected present value of future cash flows and is categorized as Level 3 within the fair value hierarchy due to the use of unobservable inputs. The Company did not record any impairment of goodwill for any of the periods presented. |
IDENTIFIED INTANGIBLE ASSETS
IDENTIFIED INTANGIBLE ASSETS | 12 Months Ended |
Dec. 30, 2023 | |
IDENTIFIED INTANGIBLE ASSETS | |
IDENTIFIED INTANGIBLE ASSETS | NOTE 11 IDENTIFIED INTANGIBLE ASSETS As of December 30, 2023 December 31, 2022 Gross Accumulated Gross Accumulated U.S. dollars in millions Assets Amortization Net Assets Amortization Net Developed technology $ 3,705 $ 2,008 $ 1,697 $ 3,973 $ 1,870 $ 2,103 Customer relationships & brands 786 430 356 786 362 424 Total $ 4,491 $ 2,438 $ 2,053 $ 4,759 $ 2,232 $ 2,527 Amortization expenses recorded for developed technology and customer relationships and brands were recorded in cost of revenue and sales and marketing, respectively, in the consolidated statements of operations and comprehensive income (loss) for each year presented. The Company did not record any impairment of intangible assets for any of the periods presented. The following table presents the amortization expenses recorded for these identified intangible assets and their weighted average useful lives: Year ended Weighted Average U.S. dollars in millions December 30, 2023 December 31, 2022 December 25, 2021 Useful Life Developed technology $ 406 $ 469 $ 419 10 Customer relationships & brands 68 75 90 12 Total amortization expenses $ 474 $ 544 $ 509 The Company expects future amortization expenses for the next five years and thereafter to be as follows: U.S. dollars in millions 2024 2025 2026 2027 2028 Thereafter Total Future Amortization Expenses $ 444 $ 443 $ 332 $ 179 $ 176 $ 479 $ 2,053 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 30, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE 12 SEGMENT INFORMATION An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”), or decision- making group, to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer (“CEO”). The Company’s organizational structure and management reporting supports two operating segments: Mobileye and Moovit. The CODM evaluates performance, makes operating decisions and allocates resources based on the financial data of these operating segments. Operating segments do not record inter-segment revenue. Mobileye is the Company’s only reportable operating segment and Moovit is presented within “Other” as per ASC 280, Segment Reporting. Segment performance is the operating income reported excluding the amortization of acquisition-related intangible assets. The CODM uses segment performance to allocate resources (including employees and financial resources) to segments in the annual budget and forecasting process and also uses that measure to assess the segment performance. The measure of assets has not been disclosed for each segment as it is not regularly reviewed by the CODM. The accounting policies of the individual segments are the same as those described in the Significant Accounting Policies The following is segment results for each year: Year ended December 30, 2023 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 2,045 $ 34 $ — $ 2,079 Cost of revenues 620 6 406 1,032 Research and development, net 848 41 — 889 Sales and marketing 38 12 68 118 General and administrative 62 11 — 73 Segment performance $ 477 $ (36) $ (474) $ (33) Interest income (expense) with related party, net — Other financial income (expense), net 49 Income (loss) before taxes on income 16 Share-based compensation 233 19 — 252 Depreciation of property and equipment 39 — — 39 Year ended December 31, 2022 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 1,843 $ 26 $ — $ 1,869 Cost of revenues 473 5 469 947 Research and development, net 747 42 — 789 Sales and marketing 34 11 75 120 General and administrative 34 12 4 50 Segment performance $ 555 $ (44) $ (548) $ (37) Interest income (expense) with related party, net (6) Other financial income (expense), net 11 Income (loss) before taxes on income (32) Share-based compensation 158 16 — 174 Depreciation of property and equipment 23 — — 23 Year ended December 25, 2021 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 1,363 $ 23 $ — $ 1,386 Cost of revenues 308 4 419 731 Research and development, net 505 39 — 544 Sales and marketing 30 14 90 134 General and administrative 21 13 — 34 Segment performance $ 499 $ (47) $ (509) $ (57) Interest income (expense) with related party, net 3 Other financial income (expense), net (3) Income (loss) before taxes on income (57) Share-based compensation 85 12 — 97 Depreciation of property and equipment 17 — — 17 Total revenues based on the country that the product was shipped to were as follows: Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 China 640 551 270 USA 437 472 363 Germany 353 268 263 South Korea 164 115 107 United Kingdom 150 221 198 Poland 97 69 24 Hungary 94 87 66 Czech Republic 50 8 — Singapore 21 25 42 Rest of World 73 53 53 Total $ 2,079 $ 1,869 $ 1,386 We generate the majority of our revenue from the sale of our EyeQ TM TM Major Customers Revenue from major customers that amount to 10% or more of total revenue: Year ended December 30, December 31, December 25, 2023 2022 2021 Percent of total revenues Customer A 30 % 38 % 35 % Customer B 24 % 18 % 19 % Customer C 14 % 15 % 17 % Accounts receivable balances of major customers that amount to 10% or more of total accounts receivable balance: As of December 30, December 31, 2023 2022 Percent of total accounts receivables balance Customer A 44 % 32 % Customer B 10 % 19 % Customer C 22 % 25 % |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 30, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 13 SUBSEQUENT EVENTS Share-based compensation In January 2024, the Company’s compensation committee approved the issuance of restricted stock units to be issued under our 2022 Equity Incentive Plan. The total aggregate fair value of RSUs granted was $15.4 million, which constituted 596 thousand RSUs, which will vest over a service period of three years. U.S. Class Action Securities Litigation. On January 16, 2024, a putative class action captioned McAuliffe v. Mobileye Global Inc., et al., 1:24-CV-00310 (S.D.N.Y.), was filed in the United States District Court for the Southern District of New York against Mobileye and certain of its current and former officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with defendants’ alleged misstatements and omissions concerning the build-up of excess inventory by certain Tier 1 Mobileye customers. The complaint seeks unspecified damages and other relief on behalf of all persons and entities who purchased or otherwise acquired Mobileye securities between January 26, 2023 and January 3, 2024. We intend to defend the matter vigorously. No provision was recorded in the financial statements. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The Company operates on a 52-week or 53-week fiscal year that ends on the last Saturday in December. Fiscal year 2023 was a 52-week fiscal year. Fiscal years 2022 and 2021 were 53 and 52 weeks fiscal years. Prior to the Mobileye IPO The financial statements and accompanying notes that include periods ending or as of dates prior to the completion of the Mobileye IPO have been derived from the consolidated financial statements and accounting records of Intel and are presented as if the Company had been operating as a stand-alone company. The assets, liabilities, revenue, and expenses directly attributable to the Company’s operations, including the acquired goodwill and intangible assets, have been reflected in these consolidated financial statements on a historical cost basis, as included in the consolidated financial statements of Intel. The Company utilized the Intel Aligned Groups mainly in research and development activities. The associated costs of the Intel Aligned Groups are reflected on a specific attribution basis in the consolidated statements of operations and comprehensive income (loss). Intel Aligned Groups also participated in various Intel compensation and benefit plans. Portions of those plans’ costs were based on actual headcount and included in these consolidated financial statements. These costs are not necessarily indicative of costs that would have been incurred had the Company operated on a stand-alone basis. The statements of operations and comprehensive income (loss) include allocations of general corporate expenses from Intel. These expenses have been allocated to the Company on the basis of direct usage when identifiable or allocated on the basis of headcount. Management of the Company and Parent considered the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of the services provided to or the benefit received by the Company during the periods presented. Mobileye largely continued to operate as a standalone operation and had not been fully integrated into Intel, with limited use of corporate overhead functions. The allocated costs for the periods presented in the statement of operations and comprehensive income (loss) were not material. The allocations may not be reflective of the expenses that would have incurred had the Company operated as a stand-alone company for the periods presented. These costs also may not be indicative of the expenses that the Company will incur in the future or would have incurred if the Company had obtained these services from a third party. Actual costs that may have been incurred if the Company had operated as a stand-alone company would depend on a number of factors, including the chosen organizational structure, the outsourcing of certain functions, and other strategic decisions. As Mobileye Group was not historically held by a single legal entity, total parent net investment is shown in lieu of equity in the periods prior to the completion of the Mobileye IPO and represents Intel’s total interest in the recorded net assets of Mobileye Group. All intercompany transactions within the previously combined businesses of the Company have been eliminated. Transactions between the Company and Intel, arising from arrangements with Intel and other similar related-party transactions, were considered to be effectively settled at the time the transactions were recorded, unless otherwise noted. The total net effect of the settlement of these transactions was reflected within parent net investment as a component of equity and within net transfers from Parent as a financing activity in the periods prior to the completion of the Mobileye IPO, unless otherwise noted. Following the Mobileye IPO Following the completion of the Mobileye IPO, the consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Following the legal entity reorganization and the completion of the Mobileye IPO, Intel continues to control the Company and holds all of the Company’s Class B common stock. Refer to Note 9 Related Party Transactions Equity The consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts and events reported and disclosed in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions and factors, including the current economic environment, that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. On an on-going basis, management evaluates its estimates, judgments, and assumptions. The most significant estimates and assumptions relate to useful lives of intangible assets, impairment assessment of intangible assets and goodwill, and income taxes. |
Functional currency | Functional currency The majority of the Company and its subsidiaries revenue are denominated in the United States (“U.S.”) dollar, as are most purchases of materials and components. The Company’s financings and capitalization have also been denominated in the U.S. dollar. Management believes that the currency of the primary economic environment in which the Company and its subsidiaries operate is the U.S. dollar, and thus, the U.S. dollar is the functional and reporting currency of the Company and its subsidiaries. Accordingly, transactions in currencies other than the U.S. dollar are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. Monetary assets and liabilities that are denominated in currencies other than the U.S. dollar are measured using the official exchange rate at the balance sheet date. Non-monetary assets and liabilities are remeasured into the functional currency using the historical exchange rate. The effects of foreign currency remeasurements are recorded in the consolidated statements of operations and comprehensive income (loss) as other financial income (expense), net. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash Cash equivalents consist of short term deposits and money market funds. The short term deposits are short-term unrestricted highly liquid investments that are readily convertible to cash and with original maturities of three months or less at acquisition. The money market funds consist of institutional investors money market funds and are readily redeemable to cash. Restricted bank deposits are cash amounts related to bank guarantees mainly in connection with lease agreements and import of vehicles. Such deposits are stated at cost including accrued interest, which approximates market values. These amounts are included in other current and long-term assets on the consolidated balance sheets. The following is a reconciliation of the cash, cash equivalents and restricted cash for each period presented: As of December 30, December 31, U.S. dollars in millions 2023 2022 Cash $ 58 $ 188 Short term deposits 222 285 Money market funds 932 551 Restricted cash (within other current and other long-term assets) 14 11 Cash, cash equivalents and restricted cash $ 1,226 $ 1,035 |
Fair value measurement | Fair value measurement When determining fair value, the Company considers the principal or most advantageous market in which it would transact, as well as assumptions that market participants would use when pricing the asset or liability. The Company assesses fair value hierarchy levels for its financial assets based on the underlying financial instrument. Consistent with Accounting Standards Codification (“ASC”) 820, Fair Value Measurement, the Company follows a three-tier fair value hierarchy as a basis for considering the assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets but are corroborated by market data or active market data for similar, but not identical assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The Company monitors and reviews the inputs and results of these valuation models to help ensure the fair value measurements are reasonable and consistent with market experience in similar asset classes. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and considers credit risk in its assessment of fair value. The carrying value of short term deposits classified as cash equivalents approximates their fair value due to the short maturity of these items. The Company’s investment in money market funds are measured at fair value within Level 1 of the fair value hierarchy because they consist of financial assets for which quoted prices are available in an active market. Interest income related to money market funds for the years ended December 30, 2023 and December 31, 2022 amounted to $46 million and $1 million, respectively. The carrying amounts of trade accounts receivable and accounts payable approximate fair value because of their generally short maturities. As described in further detail in Note 10, goodwill is evaluated for impairment at least once a year or more frequently if indicators of potential impairment exist. If a quantitative assessment is required, than the reporting unit’s fair value is measured. |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value. The Company computes inventory cost on an average cost basis and adjusts for excess and obsolete inventories primarily based on future demand and market conditions, including product-specific facts and circumstances which considers the Company’s customer base and an assessment of selling price in relation to product cost. Once written-down, a new lower cost basis for that inventory is established. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost, less accumulated depreciation. Property and equipment are depreciated on a straight-line basis over their estimated useful lives. The estimated useful lives per asset type are as follows: Years Computers, electronic equipment and software 3-7 Vehicles 7 Office furniture and equipment 14 Buildings 15-25 Leasehold improvements are amortized by the straight-line method over the shorter of the term of the lease and estimated useful life of the improvements. Assets in construction are not depreciated until they are available for their intended use. |
Business Combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The Company includes the results of operations of the businesses that we acquire in the consolidated financial statements beginning on the date of acquisition. The Company allocates the purchase price paid for assets acquired and liabilities assumed in connection with the Company’s acquisitions based on their estimated fair values at the time of acquisition. This allocation involves a number of assumptions, estimates, and judgments in determining the fair value of the following: ● intangible assets, including the valuation methodology, estimations of future cash flows, discount rates, and growth rates, as well as the estimated useful life of intangible assets; ● deferred tax assets and liabilities, uncertain tax positions, and tax-related valuation allowances, which are initially estimated as of the acquisition date; ● inventory; property and equipment; pre-existing liabilities or legal claims; deferred revenue; and contingent consideration, each as may be applicable; and ● goodwill measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. The Company’s assumptions and estimates are based on comparable market data and information obtained from the Company’s management and the management of the acquired companies. The Company allocates goodwill to the reporting units of the business that are expected to benefit from the acquisition. |
Goodwill | Goodwill The Company performs an annual impairment assessment of goodwill at the reporting unit level in the fourth quarter of each year, or more frequently if indicators of potential impairment exist. The analysis may include both qualitative and quantitative factors to assess the likelihood of impairment. In accordance with ASC 350, the Company initially assesses qualitative factors to determine whether the existence of events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Qualitative factors include industry and market considerations, overall financial performance, and other relevant events and factors affecting the reporting unit. If the Company determines, based on this assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, it performs a quantitative goodwill impairment test by comparing the reporting unit’s fair value with its carrying amount. An impairment loss is recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value. The Company did not record any impairment of goodwill for any of the periods presented. The Company’s quantitative impairment test may consider both the income approach and the market approach to estimate a reporting unit’s fair value. Significant estimates for the income approach include growth rates, estimated costs, and discount rates based on a reporting unit’s weighted average cost of capital. The estimated fair value using a market approach is based on a number of assumptions, including current market capitalization as corroboration of fair value. Forecasts and estimates are based on assumptions that are consistent with the plans and estimates used to manage the business. Changes in these estimates could change the conclusion regarding an impairment of goodwill. |
Intangible assets, net | Intangible assets, net The Company amortizes acquisition-related intangible assets that are subject to amortization over their estimated useful life. The Company performs an annual review of significant finite-lived identified intangible assets to determine whether facts and circumstances indicate that the carrying amount may not be recoverable. These reviews can be affected by various factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company’s business strategy and its forecasts for specific product lines. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Assets are categorized and evaluated for impairment at the lowest level of identifiable cash flows. In the event that the sum of the expected future undiscounted cash flows expected to be generated by the long-lived assets is less than the carrying amount of such assets, an impairment charge would be recognized and the assets would be written down to their estimated fair values. The Company did not record any impairment of long-lived assets for any of the periods presented. |
Research and development, net | Research and development, net Research and development costs are expensed as incurred, and consist primarily of personnel, facilities, equipment, and supplies for research and development activities. The Company follows the provisions of ASC 985, Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed, which requires that software development costs incurred in conjunction with development be charged to research and development expenses until technological feasibility is established. The technological feasibility is established upon completion of a working model. The costs incurred by the Company between technological feasibility and general release to the public have been insignificant. Accordingly, all research and development costs have been expensed as incurred. The Company enters into best-efforts nonrefundable, non-recurring engineering (“NRE”) arrangements pursuant to which the Company is reimbursed for a portion of the research and development expenses attributable to specific development programs. The Company does not receive any additional compensation or royalties upon completion of such projects and the potential customer does not commit to purchase the resulting product in the future. The participation reimbursement received by the Company does not depend on whether there are future benefits from the project. All intellectual property generated from these arrangements is exclusively owned by the Company. Participation in expenses for research and development projects are recognized on the basis of the costs incurred and are netted against research and development expenses in the consolidated statements of operations and comprehensive income (loss). Research and development reimbursements of $89 million, $58 million, and $54 million were offset against research and development costs in the years ended December 30, 2023, December 31, 2022, and December 25, 2021, respectively. |
Derivatives and hedging | Derivatives and hedging Beginning in 2021, as part of Intel’s corporate hedging program, Intel is hedging forecasted cash flows denominated in Israeli Shekel (“ILS”) related to the Company. ILS is the largest operating expense currency of the Company. Intel combines all of its ILS exposures, and as part of Intel’s hedging program enters into hedging contracts to hedge Intel’s combined ILS exposure. Derivative gains and losses attributed to these consolidated financial statements are recorded under accumulated other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects the statement of operations. During the fourth quarter of 2022, the Company de-designated its remaining cash flow hedges for forecasted operating expenses denominated in ILS and will no longer participate in the hedging services agreement with Intel. As the hedged transactions and cash flows related to the outstanding instruments are expected to occur as originally forecasted, the associated gains and losses deferred in accumulated other comprehensive income (loss) on the Company’s consolidated balance sheet were reclassified into earnings in the same period or periods during which the originally hedged transactions affect earnings. Any subsequent changes in the fair value of the outstanding derivative instruments after the de-designation and termination of hedge accounting, were immediately reflected in operating expenses. As of December 30, 2023, there are no outstanding hedging instruments and all of the related accumulated other comprehensive income (loss) was reclassified into the statement of operations and comprehensive income (loss). The notional amount and fair value of derivatives outstanding at Intel on behalf of Mobileye were: As of December 30, December 31, U.S. dollars in millions 2023 2022 Notional amount of derivatives $ — $ 93 Fair value of derivatives receivable from (payable to) Intel $ — $ (9) The change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging was as follows: Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Other comprehensive income (loss) before reclassifications $ — $ (33) $ 18 Amounts reclassified out of accumulated other comprehensive income (loss) 10 18 (13) Tax effects (1) 1 — Other comprehensive income (loss), net $ 9 $ (14) $ 5 |
Revenue recognition | Revenue recognition The Company recognizes revenue when performance obligations are satisfied as evidenced by the transfer of control of the Company’s products or services to customers. Substantially all of the Company’s revenue is derived from product sales. In accordance with contract terms, revenue for product sales is recognized at the time of product shipment from the Company’s facilities, as determined by the agreed upon ‘ex-works’ shipping terms which specify that title and risks will pass to the customer upon delivery at the Company’s warehouse. Revenue for product sales to resellers and distributors is recognized at the time of delivery of products to the resellers and distributors. The Company measures revenue based on the amount of consideration the Company expects to be entitled to in exchange for products or services. Variable consideration is estimated and reflected as an adjustment to the transaction price. The Company determines variable consideration, which consists primarily of various volume rebates, by estimating the most likely amount of consideration the Company expects to receive from the customer. Volume rebates earned by customers are offset against their receivable balances. Rebates earned by customers when they do not have outstanding receivable balances are recorded within other current liabilities. Substantially all of the Company’s contracts do not include right of return or acceptance provisions. Revenue is recognized net of any taxes invoiced to customers, which are subsequently remitted to governmental authorities. Any shipping and handling costs related to the fulfillment of sales are included in cost of revenue. Sales of the Company’s products regularly include warranties which provides the customer with assurance that the products delivered will perform in accordance with agreed-upon specifications. These standard warranties are assurance type warranties and do not offer any services in addition to the assurance that the product will continue working as specified. Therefore, the warranties are not considered separate performance obligations. The Company is generally the principal in a transaction and, therefore, primarily records revenue on a gross basis. When the Company is a principal in a transaction, it has determined that it controls the ability to direct the use of the product prior to transfer to a customer, is primarily responsible for fulfilling the promise to provide the product or service to the customer, has discretion in establishing prices, and ultimately controls the transfer of the product or services provided to the customer. |
Advertising expenses | Advertising expenses Advertising expenses are charged to sales and marketing on the consolidated statements of operations and comprehensive income (loss) as incurred. Advertising expenses for the years ended December 30, 2023, December 31, 2022, and December 25, 2021 amounted to $4 million, $3 million and $2 million, respectively. |
Share-based compensation | Share-based compensation Prior to the completion of the Mobileye IPO, the Company’s employees participated in Intel’s equity incentive plans and were granted options and restricted stock units (“RSUs”) on Intel’s common shares. In connection with the Mobileye IPO, the Company approved the Mobileye Global Inc. 2022 Equity Incentive Plan (the “2022 Plan”) which allows the compensation committee of the Company to make equity-based incentive awards to our employees, consultants and outside directors. Equity awards granted to employees are accounted for using the estimated grant date fair value. The Company estimates the fair value of employee stock options to purchase shares of Intel common stock with a service condition using an option pricing model at the date of grant and values RSUs based on the market value of the underlying share of Intel or Mobileye common stock (as applicable) at the date of grant. The Company recognizes share-based compensation expense for the value of its awards, which have graded vesting based on service conditions, using the straight-line method over the requisite service period of each of the awards, net of estimated forfeitures. |
Income Tax | Income Taxes The provision for income tax consists of income taxes in the various jurisdictions where the Company is subject to taxation, primarily the United States and Israel. The Company computes the provision for income taxes under the asset and liability method prescribed by the Financial Accounting Standards Board (“FASB”) Guidance ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in these consolidated financial statements. Under this method, deferred tax assets and liabilities, resulting from temporary differences between the financial reporting and tax bases of assets and liabilities, are measured as of the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The realization of deferred tax assets depends upon the existence of sufficient taxable income, of appropriate character, within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when the Company determines, based on available information, that it is more likely than not that deferred tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. The Company records accruals for uncertain tax positions when the Company believes that it is more likely than not that a tax position will not be sustained on examination by tax authorities based on the technical merits of the position. The Company adjusts these accruals when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. During the years presented in the consolidated financial statements, certain components of the Company’s business operations were included in the consolidated US domestic income tax return filed by the Company’s Parent. The Company also files various foreign income tax returns on a separate basis, distinct from its Parent. The income tax provision included in the Company’s consolidated financial statements has been calculated using the separate return method, as if the Company had filed its own tax returns. The Company has entered into a Tax Sharing Agreement with its Parent that establishes the amount of cash payable for the Company’s share of the tax liability owed on consolidated tax return filings with its Parent. Any differences between taxes currently payable to the Company’s Parent under the Tax Sharing Agreement and the current tax provision computed on a separate return basis, is reflected as adjustments to additional paid-in capital in the consolidated statement of changes in equity and financing activities within the consolidated statement of cash flows. For additional information regarding the Tax Sharing Agreement, see Note 9 of the Notes to Consolidated Financial Statements. The Company presents tax loss and tax credit carry-forward attributes under the separate return method approach. Such tax attributes may not be benefited in the same period as the Company’s Parent on a consolidated tax return. As a result, there are inherent differences between the Company’s separate tax return method approach and certain actual tax returns filed on a consolidated basis with Intel. For further detail regarding income tax, refer to Note 8 Income Taxes. |
Provision for warranties | Provision for warranties The Company provides warranties for its products, which vary with respect to each contract and in accordance with the nature of each specific product. The warranty terms vary from one to three years, with the vast majority of the Company’s products being subject to a warranty period of three years. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time revenue is recognized. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Provision for warranties is included in other current liabilities on the consolidated balance sheets. Provision for warranties as of December 30, 2023 and December 31, 2022, as well as warranty expenses for the each of the years presented were not material. |
Loss contingencies | Loss contingencies The Company is currently involved in commercial claims within the ordinary course of business. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the loss can be reasonably estimated, the Company accrues a liability for the estimated loss. When accruing these costs, the Company recognizes an accrual for an amount within a range of loss that is the best estimate within the range. When no amount within the range is a better estimate than any other, the Company accrues for the minimum estimated loss within the range. The Company discloses contingencies when it believes that a loss is not probable, but reasonably possible. Management believes that there are no current matters that would have a material effect on the Company’s consolidated balance sheets, statement of operations or cash flows. Legal fees are expensed as incurred. |
Leases | Leases The Company accounts for leases in accordance with ASC 842, Leases, which requires lessees to recognize leases on the consolidated balance sheets and disclose key information about leasing arrangements. Leases primarily consist of real estate property and vehicles and are classified as operating leases with fixed payment terms. Certain operating leases provide for annual increases to lease payments based on an index or a rate. The Company determines if an arrangement is a lease, or contains a lease, at inception and records the leases upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are included in other long-term assets, other current liabilities, and other long-term liabilities on the consolidated balance sheet. Lease expenses for the operating leases are recognized on a straight-line basis over the lease term and are included in operating expenses in the consolidated statements of operations and comprehensive income (loss). Options to extend or terminate the lease are taken into account when it is reasonably certain at the commencement date that such options will be exercised. The Company elected to apply the short-term lease exemption for lease with a non-cancelable period of twelve months or less. Additionally, the Company has lease agreements with lease and non-lease components. The non-lease components are accounted for separately and not included in the leased assets and corresponding liabilities. On the commencement date, lease payments that include variable lease payments dependent on an index or a rate (such as the Consumer Price Index or a market interest rate), are initially measured using the index or rate at the commencement date. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate because the interest rate implicit in most of its leases is not readily determinable. |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Undistributed earnings (loss) are allocated proportionally to Class A and Class B stockholders as both classes are entitled to share equally, on a per share basis, in dividends and other distributions. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period, while giving effect to all potentially dilutive common shares to the extent they are dilutive. Potentially dilutive common shares result from the assumed vesting of RSUs under the 2022 Plan, using the “treasury stock” method. RSUs are not included in the computation of diluted earnings (loss) per share if the effect of their inclusion would have been anti-dilutive. Refer to Note 7 Earnings (Loss) Per Share |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, which include short-term deposits and money market funds, and also trade accounts receivable. The majority of the Company’s cash and cash equivalents are invested in banks domiciled in the U.S. and Europe, as well as in Israel. Generally, these cash equivalents may be redeemed upon demand. Short term bank deposits are held in the aforementioned banks. Money market funds consist of institutional investors money market funds and are readily redeemable to cash. Accordingly, management believes that these bank deposits and money market funds have minimal credit risk. The Company’s accounts receivable are derived primarily from sales to Tier 1 suppliers to the automotive manufacturing industry located mainly in the U.S., Europe, and China. Concentration of credit risk with respect to accounts receivable is mitigated by credit limits, ongoing credit evaluation, and account monitoring procedures. Credit is granted based on an evaluation of a customer’s financial condition and, generally, collateral is not required. Trade accounts receivable are typically due from customers within 30 to 60 days. The Company performs ongoing credit evaluations of its customers and has not experienced any material losses in the periods presented. The Company recognizes an allowance for credit losses for any potential uncollectible amounts. The allowance is based on various factors, including historical experience, the age of the accounts receivable balances, credit quality of the customers, and other reasonable and supportable information. This allowance consists of an amount based on overall estimated exposure for the receivable portfolio and amounts identified for specific customers. Expected credit losses are recorded as general and administrative expenses in the Company’s consolidated statement of operations and comprehensive income. As of December 30, 2023 and December 31, 2022, the credit loss allowance of trade accounts receivable was not material. For each of the years presented, the charge-offs and recoveries in relation to the credit losses were not material. |
Customer concentration risk | Customer concentration risk The Company’s business, results of operations, and financial condition for the foreseeable future will likely continue to depend on sales to a relatively small number of customers. In the future, these customers may decide not to purchase the Company’s products, may purchase fewer products than in previous years, or may alter their purchasing patterns. Further, the amount of revenue attributable to any single customer or customer concentration generally may fluctuate in any given period. In addition, a decline in the production levels of one or more of the Company’s major customers, particularly with respect to vehicle models for which the Company is a significant supplier, could reduce revenue. The loss of one or more key customers, a reduction in sales to any key customer or the Company’s inability to attract new significant customers could negatively impact revenue and adversely affect the Company’s business, results of operations, and financial condition. See Note 12 Segment Information |
Dependence on a single supplier risk | Dependence on a single supplier risk The Company purchases all its System on Chip (“EyeQ TM TM |
Supply chain risk | Supply chain risk During the fiscal years 2022 and 2021, due to global supply chain constraints and shortage of semiconductors, the Company’s sole supplier was not able to meet demand of the Company for EyeQ TM TM TM TM TM |
New Accounting pronouncements | New Accounting pronouncements Accounting Pronouncements effective in future periods In December 2023, the FASB issued ASU 2023-09 Improvements to Income Tax Disclosures. The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. For public business entities, the ASU is effective for annual periods beginning after December 15, 2024. The Company is evaluating the potential impact of this guidance on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU improves reportable segments disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the potential impact of this guidance on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | As of December 30, December 31, U.S. dollars in millions 2023 2022 Cash $ 58 $ 188 Short term deposits 222 285 Money market funds 932 551 Restricted cash (within other current and other long-term assets) 14 11 Cash, cash equivalents and restricted cash $ 1,226 $ 1,035 |
Schedule of estimated useful lives per asset type | Years Computers, electronic equipment and software 3-7 Vehicles 7 Office furniture and equipment 14 Buildings 15-25 |
Schedule of change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging | Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Other comprehensive income (loss) before reclassifications $ — $ (33) $ 18 Amounts reclassified out of accumulated other comprehensive income (loss) 10 18 (13) Tax effects (1) 1 — Other comprehensive income (loss), net $ 9 $ (14) $ 5 |
Schedule of notional amount and fair value of derivatives outstanding at Intel on behalf of Mobileye | As of December 30, December 31, U.S. dollars in millions 2023 2022 Notional amount of derivatives $ — $ 93 Fair value of derivatives receivable from (payable to) Intel $ — $ (9) |
OTHER FINANCIAL STATEMENT DET_2
OTHER FINANCIAL STATEMENT DETAILS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
OTHER FINANCIAL STATEMENT DETAILS | |
Schedule of inventories | As of December 30, December 31, U.S. dollars in millions 2023 2022 Raw materials $ 46 $ 41 Work in process 1 — Finished goods 344 72 Total inventories $ 391 $ 113 |
Schedule of property and equipment, net | As of December 30, December 31, U.S. dollars in millions 2023 2022 Computers, electronic equipment and software $ 167 $ 124 Vehicles 14 13 Office furniture and equipment 11 4 Buildings 315 — Leasehold improvements 37 22 Construction in process — 302 Total property and equipment, gross 544 465 Less: accumulated depreciation (97) (81) Total property and equipment, net $ 447 $ 384 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
LEASES | |
Schedule of operating leases presented on the consolidated balance sheets in other long-term assets, other current liabilities and long-term liabilities | As of December 30, December 31, U.S. dollars in millions 2023 2022 Operating lease right-of-use assets $ 49 $ 57 Operating lease liabilities: Current portion of lease liabilities 12 13 Long-term lease liabilities 39 45 Total operating lease liabilities $ 51 $ 58 |
Schedule of supplemental information related to operating leases | Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Operating cash outflows from operating leases $ 16 $ 12 $ 12 Right-of-use assets recognized in exchange for lease obligations $ 8 $ 48 $ 4 |
Schedule of maturities of future minimum lease payments | December 30, U.S. Dollars in millions 2023 2024 $ 14 2025 13 2026 10 2027 9 2028 and thereafter 10 Total operating lease payments 56 Imputed interest (5) Present value of lease liabilities $ 51 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
EQUITY | |
Schedule of RSUs activity | The RSU activity for the years ended December 30, 2023 and December 31, 2022 for RSUs granted to the Company’s employees under the 2022 Plan was as follows: Weighted average grant Number of RSUs date fair value per share In thousands U.S. dollars Outstanding as of December 25, 2021 — $ — Granted 12,570 21 Forfeited (6) 21 Outstanding as of December 31, 2022 12,564 21 Granted 6,782 40 Vested (4,240) 21 Forfeited (328) 26 Outstanding as of December 30, 2023 14,778 $ 30 |
Schedule of outstanding and exercisable options | Outstanding and exercisable options for Intel’s common stock under Intel’s 2006 Plan as of December 30, 2023 were as follows: Outstanding Exercisable Weighted average Weighted Weighted Number of remaining average Number of average Exercise price options contractual life exercise price options exercise price U.S. dollars In thousands In years U.S. dollars In thousands U.S. dollars $ 4.0 - 21.6 59 2.1 $ 6.1 52 $ 4.0 $ 22.4 - 24.3 8 0.1 23.5 8 23.5 $55.2 68 0.2 55.2 68 55.2 Total 135 1.0 $ 31.7 128 $ 32.2 |
Schedule of option activity | Weighted average Weighted Aggregated Number of remaining average intrinsic options contractual Life exercise price value(1) In thousands In years U.S. dollars U.S. dollars in millions Options outstanding as of December 26, 2020 6,391 2.4 $ 29.2 $ 114 Exercised (2,807) — 29.3 — Forfeited (6) — 24.5 — Options outstanding as of December 25, 2021 3,578 1.5 29.2 79 Exercised (1,308) — 32.8 — Options outstanding as of December 31, 2022 2,270 0.8 27.1 1 Exercised (36) — 22.3 — Expired (2,099) — 26.9 — Options outstanding as of December 30, 2023 135 1.0 $ 31.7 $ 3 Options exercisable as of December 30, 2023 128 1.0 $ 32.2 $ 3 (1) (2) |
Schedule of share-based compensation expenses | Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Cost of revenue $ 2 $ 2 $ 1 Research and development, net 212 153 77 Sales and marketing 7 5 4 General and administrative 31 14 15 Total share-based compensation $ 252 $ 174 $ 97 |
Intel | |
EQUITY | |
Schedule of RSUs activity | The RSU activity for the years ended December 30, 2023, December 31, 2022, and December 25, 2021 for RSUs granted to Company’s employees for Intel’s common stock was as follows: Weighted average grant Number of RSUs date fair value per share In thousands U.S. dollars Outstanding as of December 26, 2020 4,339 $ 44.6 Granted 2,935 47.8 Vested (1,761) 44.0 Forfeited (235) 46.4 Outstanding as of December 25, 2021 5,278 46.5 Granted 3,758 43.7 Vested (2,935) 45.9 Forfeited (409) 48.1 Outstanding as of December 31, 2022 5,692 44.8 Vested (2,690) 45.0 Forfeited (291) 46.1 Outstanding as of December 30, 2023 2,711 $ 44.4 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of calculation of basic and diluted earnings (loss) per share | Year ended December 30, December 31, December 25, In millions, except per share amounts 2023 2022 2021 Numerator: Net income (loss) $ (27) $ (82) $ (75) Denominator: Weighted average common shares - basic and diluted 805 759 750 Earnings (loss) per share: Basic and diluted $ (0.03) $ (0.11) $ (0.10) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
INCOME TAXES | |
Summary of loss before income taxes | Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Income (loss) before taxes: U.S $ (13) $ (49) $ (96) Non-U.S 29 17 39 Total income (loss) before income taxes $ 16 $ (32) $ (57) |
Summary of benefit (provision) for income taxes | Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Current income taxes: U.S $ — $ — $ — Non-U.S (58) (67) (47) Total current provision for income taxes (58) (67) (47) Deferred income taxes: U.S. (28) (28) (30) Non-U.S. 43 45 59 Total deferred benefit (provision) for income taxes 15 17 29 Total benefit (provision) for income taxes $ (43) $ (50) $ (18) |
Summary of income taxes reconciliation | Year ended December 30, December 31, December 25, 2023 2022 2021 % Statutory federal income tax rate 21.0 21.0 21.0 Increase (reduction) in rate resulting from: Foreign rate differential 2.7 (1.2) (1.9) Technology incentives – current (568.7) 312.7 183.1 Technology incentives – deferred 461.5 (230.6) (116.4) U.S. branch taxation of foreign operations 243.9 (127.3) (54.4) Changes in uncertain tax position, net 42.1 16.1 (0.3) Share-based compensation related adjustments (2.4) (0.5) (13.7) Changes in valuation allowance 43.1 (151.9) (50.0) Non-deductible expenses and other 25.4 (6.5) 1.0 Withholding taxes, net of credit — 12.1 — Effective tax rate 268.6 (156.1) (31.6) |
Summary of significant components of the Company's deferred tax assets and deferred tax liabilities | December 30, December 31, U.S. dollars in millions 2023 2022 Deferred tax assets: Share-based compensation $ 105 $ 89 Provisions for employee benefits 8 7 Net operating losses carryforward 103 142 Research and development expenses 455 283 Operating lease liabilities 12 13 Foreign tax credit and deferrals 13 33 Intangible assets 179 147 Other 15 3 Gross deferred tax assets 890 717 Valuation allowance (579) (533) Total deferred tax assets 311 184 Deferred tax liabilities: Intangible assets (126) (161) Goodwill (322) (172) Right of use assets (11) (13) Total deferred tax liabilities (459) (346) Net deferred tax liabilities $ (148) $ (162) |
Summary of changes in valuation allowance for deferred tax assets | Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Valuation allowance at beginning of year $ 533 $ 229 $ — Additions — — 185 Change in valuation allowance 46 304 44 Valuation allowance at end of year $ 579 $ 533 $ 229 |
Summary of reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions | Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 Balance at the beginning of the year $ — $ 4 $ 4 Changes in balances related to tax positions taken during current period 7 — — Settlements with taxing authorities — — — Lapse of statute of limitations — (4) — Balance at the end of the year $ 7 $ — $ 4 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
GOODWILL | |
Schedule of goodwill | As of December 30, December 31, U.S. dollars in millions 2023 2022 Mobileye $ 10,784 $ 10,784 Other 111 111 Total $ 10,895 $ 10,895 |
IDENTIFIED INTANGIBLE ASSETS (T
IDENTIFIED INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
IDENTIFIED INTANGIBLE ASSETS | |
Schedule of components of identified intangible assets | As of December 30, 2023 December 31, 2022 Gross Accumulated Gross Accumulated U.S. dollars in millions Assets Amortization Net Assets Amortization Net Developed technology $ 3,705 $ 2,008 $ 1,697 $ 3,973 $ 1,870 $ 2,103 Customer relationships & brands 786 430 356 786 362 424 Total $ 4,491 $ 2,438 $ 2,053 $ 4,759 $ 2,232 $ 2,527 |
Schedule of amortization expenses recorded for these identified intangible assets and their weighted average useful lives | Year ended Weighted Average U.S. dollars in millions December 30, 2023 December 31, 2022 December 25, 2021 Useful Life Developed technology $ 406 $ 469 $ 419 10 Customer relationships & brands 68 75 90 12 Total amortization expenses $ 474 $ 544 $ 509 |
Schedule of expects future amortization expenses for the next five years | U.S. dollars in millions 2024 2025 2026 2027 2028 Thereafter Total Future Amortization Expenses $ 444 $ 443 $ 332 $ 179 $ 176 $ 479 $ 2,053 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
SEGMENT INFORMATION | |
Schedule of segment results | Year ended December 30, 2023 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 2,045 $ 34 $ — $ 2,079 Cost of revenues 620 6 406 1,032 Research and development, net 848 41 — 889 Sales and marketing 38 12 68 118 General and administrative 62 11 — 73 Segment performance $ 477 $ (36) $ (474) $ (33) Interest income (expense) with related party, net — Other financial income (expense), net 49 Income (loss) before taxes on income 16 Share-based compensation 233 19 — 252 Depreciation of property and equipment 39 — — 39 Year ended December 31, 2022 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 1,843 $ 26 $ — $ 1,869 Cost of revenues 473 5 469 947 Research and development, net 747 42 — 789 Sales and marketing 34 11 75 120 General and administrative 34 12 4 50 Segment performance $ 555 $ (44) $ (548) $ (37) Interest income (expense) with related party, net (6) Other financial income (expense), net 11 Income (loss) before taxes on income (32) Share-based compensation 158 16 — 174 Depreciation of property and equipment 23 — — 23 Year ended December 25, 2021 Amounts not allocated to U.S. dollars in millions Mobileye Other segments Consolidated Revenues $ 1,363 $ 23 $ — $ 1,386 Cost of revenues 308 4 419 731 Research and development, net 505 39 — 544 Sales and marketing 30 14 90 134 General and administrative 21 13 — 34 Segment performance $ 499 $ (47) $ (509) $ (57) Interest income (expense) with related party, net 3 Other financial income (expense), net (3) Income (loss) before taxes on income (57) Share-based compensation 85 12 — 97 Depreciation of property and equipment 17 — — 17 |
Schedule of total revenues based on country | Year ended December 30, December 31, December 25, U.S. dollars in millions 2023 2022 2021 China 640 551 270 USA 437 472 363 Germany 353 268 263 South Korea 164 115 107 United Kingdom 150 221 198 Poland 97 69 24 Hungary 94 87 66 Czech Republic 50 8 — Singapore 21 25 42 Rest of World 73 53 53 Total $ 2,079 $ 1,869 $ 1,386 |
Schedule of concentration of risk | Year ended December 30, December 31, December 25, 2023 2022 2021 Percent of total revenues Customer A 30 % 38 % 35 % Customer B 24 % 18 % 19 % Customer C 14 % 15 % 17 % As of December 30, December 31, 2023 2022 Percent of total accounts receivables balance Customer A 44 % 32 % Customer B 10 % 19 % Customer C 22 % 25 % |
GENERAL (Details)
GENERAL (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 31, 2024 | Dec. 30, 2023 | Jun. 12, 2023 | Jun. 07, 2023 | Oct. 28, 2022 |
GENERAL | |||||
Underwriting discounts and commissions | $ 41 | ||||
Offering costs | 18 | ||||
Amount of secondary offering | $ 1 | ||||
Subsequent Events | |||||
GENERAL | |||||
Percentage of employees who have been called to reserve duty in the Israel Defense Forces | 10.50% | ||||
Class A | |||||
GENERAL | |||||
Number of shares converted into Class A common stock | 38,500,000 | ||||
IPO | |||||
GENERAL | |||||
Net proceeds from IPO | $ 1,000 | ||||
IPO | Class A | |||||
GENERAL | |||||
Issuance of Class A common stock in Initial Public Offering, net of underwriting discounts, commissions and offering costs (in shares) | 41,000,000 | ||||
Offering price per share | $ 21 | ||||
Private placement | |||||
GENERAL | |||||
Gross proceeds from private placement | $ 100 | ||||
Private placement | Class A | |||||
GENERAL | |||||
Issuance of Class A common stock in Initial Public Offering, net of underwriting discounts, commissions and offering costs (in shares) | 4,761,905 | ||||
Offering price per share | $ 21 | ||||
Secondary Offering | Class A | |||||
GENERAL | |||||
Issuance of Class A common stock in Initial Public Offering, net of underwriting discounts, commissions and offering costs (in shares) | 38,500,000 | ||||
Offering price per share | $ 42 | ||||
Secondary Offering | Class B | |||||
GENERAL | |||||
Number of shares converted into Class A common stock | 38,500,000 | ||||
Moovit | |||||
GENERAL | |||||
Equity interests percentage | 100% | ||||
Intel | |||||
GENERAL | |||||
Percentage of voting power of common stock | 98.70% | ||||
Intel | Mobileye Global Inc | |||||
GENERAL | |||||
Percentage of outstanding common stock | 88.30% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |||
Interest income related to money market funds | $ 46 | $ 1 | |
Research and development reimbursements | 89 | 58 | $ 54 |
Advertising expenses | $ 4 | $ 3 | $ 2 |
Minimum | |||
SIGNIFICANT ACCOUNTING POLICIES | |||
Trade accounts receivable term | 30 days | ||
Maximum | |||
SIGNIFICANT ACCOUNTING POLICIES | |||
Trade accounts receivable term | 60 days |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of cash, cash equivalents and restricted cash (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 |
SIGNIFICANT ACCOUNTING POLICIES | ||||
Cash | $ 58 | $ 188 | ||
Short term deposits | 222 | 285 | ||
Money market funds | 932 | 551 | ||
Restricted cash (within other current and other long-term assets) | 14 | 11 | ||
Cash, cash equivalents and restricted cash | $ 1,226 | $ 1,035 | $ 625 | $ 93 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives per asset type (Details) | Dec. 30, 2023 |
Computers, electronic equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computers, electronic equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 14 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Notional amount and fair value of derivatives outstanding at Intel on behalf of Mobileye (Details) $ in Millions | Dec. 25, 2021 USD ($) |
SIGNIFICANT ACCOUNTING POLICIES | |
Notional amount of derivatives | $ 93 |
Fair value of derivatives receivable from (payable to) Intel | $ (9) |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |||
Other comprehensive income (loss) before reclassifications | $ (33) | $ 18 | |
Amounts reclassified out of accumulated other comprehensive income (loss) | $ (10) | (18) | 13 |
Tax effects | (1) | 1 | |
Other comprehensive income (loss), net | $ 9 | $ (14) | $ 5 |
OTHER FINANCIAL STATEMENT DET_3
OTHER FINANCIAL STATEMENT DETAILS - Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
OTHER FINANCIAL STATEMENT DETAILS | |||
Raw materials | $ 46 | $ 41 | |
Work in process | 1 | ||
Finished goods | 344 | 72 | |
Total inventories | 391 | 113 | |
Inventory write-downs and write-offs | $ 2 | $ 0 | $ 1 |
OTHER FINANCIAL STATEMENT DET_4
OTHER FINANCIAL STATEMENT DETAILS - Property and equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Property and equipment, net | |||
Total property and equipment, gross | $ 544 | $ 465 | |
Less: accumulated depreciation | (97) | (81) | |
Total property and equipment, net | 447 | 384 | |
Depreciation expenses | 39 | 23 | $ 17 |
Cost and accumulated depreciation of fully depreciated assets | 23 | ||
Royalty expense | 9 | 8 | $ 7 |
Computers, electronic equipment and software | |||
Property and equipment, net | |||
Total property and equipment, gross | 167 | 124 | |
Vehicles | |||
Property and equipment, net | |||
Total property and equipment, gross | 14 | 13 | |
Office furniture and equipment | |||
Property and equipment, net | |||
Total property and equipment, gross | 11 | 4 | |
Buildings | |||
Property and equipment, net | |||
Total property and equipment, gross | 315 | ||
Leasehold improvements | |||
Property and equipment, net | |||
Total property and equipment, gross | $ 37 | 22 | |
Construction on process | |||
Property and equipment, net | |||
Total property and equipment, gross | $ 302 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 25, 2021 | Dec. 30, 2023 | Dec. 31, 2022 | |
EMPLOYEE BENEFITS | |||
Severance pay liability | $ 56 | $ 56 | |
Severance pay funds included in other long-term assets | $ 45 | $ 42 | |
Monthly deposits (in percent) | 8.33% | ||
Periodic benefit costs | $ 2 | ||
Discount rate | 3.10% | ||
Percentage of increase in assumed rates of compensation | 4% |
LEASES - Schedule of operating
LEASES - Schedule of operating leases presented on the consolidated balance sheets in other long-term assets, other current liabilities and long-term liabilities (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
LEASES | ||
Operating lease right-of-use assets | $ 49 | $ 57 |
Operating lease, Right-of-Use Asset, Statement of financial position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Operating lease liabilities: | ||
Current portion of lease liabilities | $ 12 | $ 13 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Long-term operating lease liabilities | $ 39 | $ 45 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total operating lease liabilities | $ 51 | $ 58 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities |
LEASES - Schedule of maturities
LEASES - Schedule of maturities of future minimum lease payments (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Schedule of maturities of future minimum lease payments | ||
2024 | $ 14 | |
2025 | 13 | |
2026 | 10 | |
2027 | 9 | |
2028 and thereafter | 10 | |
Total operating lease liabilities | 56 | |
Imputed interest | (5) | |
Present value of lease liabilities | $ 51 | $ 58 |
LEASES - Additional information
LEASES - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
LEASES | |||
Operating lease term | 5 years | ||
Operating lease option to extend | true | ||
Operating lease expense | $ 19 | $ 13 | $ 11 |
Weighted average remaining lease term | 4 years 8 months 1 day | 5 years 5 months 12 days | |
Weighted average discount rate | 4.67% | 4.24% | |
Operating lease right-of-use assets | $ 49 | $ 57 | |
Operating lease, Right-of-Use Asset, Statement of financial position [Extensible Enumeration] | Other long-term assets | Other long-term assets | |
Operating cash outflows from operating leases | $ 16 | $ 12 | 12 |
Right-of-use assets recognized in exchange for lease obligations | 8 | 48 | $ 4 |
Leased land | |||
LEASES | |||
Operating lease right-of-use assets | $ 12 | $ 11 | |
Minimum | |||
LEASES | |||
Operating lease term | 3 years | ||
Maximum | |||
LEASES | |||
Operating lease term | 7 years |
EQUITY - Common Stock and Divid
EQUITY - Common Stock and Dividends (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
May 12, 2022 USD ($) | Oct. 31, 2022 USD ($) | Dec. 30, 2023 Vote $ / shares | Dec. 31, 2022 $ / shares | Oct. 27, 2022 $ / shares | |
EQUITY | |||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Dividend paid | $ | $ 336 | ||||
Cash paid to tax authorities to settle tax obligations | $ | $ 14 | ||||
Capital distribution paid | $ | $ 1.1 | ||||
Intel | Mobileye Global Inc | |||||
EQUITY | |||||
Ownership Percentage | 88.30% | ||||
Class A | |||||
EQUITY | |||||
Common stock, par value | $ / shares | $ 0.01 | ||||
Number of votes per share | Vote | 1 | ||||
Common stock conversion ratio | 1 | ||||
Class B | |||||
EQUITY | |||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Number of votes per share | Vote | 10 | ||||
Percentage of voting power of common stock of Mobileye | 98.70% |
EQUITY - Stock-based compensati
EQUITY - Stock-based compensation plans (Details) - RSUs - Mobileye Plan - Chief Executive Officer - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
EQUITY | ||
Number of shares issuable upon vesting of restricted stock units | 0.4 | 2.1 |
Aggregate value of shares issuable upon vesting of restricted stock units | $ 14 | $ 44 |
Service period | 5 years |
EQUITY - RSU activity on 2022 E
EQUITY - RSU activity on 2022 Equity Incentive Plan (Details) - 2022 Equity Incentive Plan - RSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Number of RSUs | ||
Outstanding at beginning | 12,564 | |
Granted | 6,782 | 12,570 |
Vested | (4,240) | |
Forfeited | (328) | (6) |
Outstanding at ending | 14,778 | 12,564 |
Weighted average grant date fair value | ||
Outstanding at beginning | $ 21 | |
Granted | 40 | $ 21 |
Vested | 21 | |
Forfeited | 26 | 21 |
Outstanding at ending | $ 30 | $ 21 |
Unrecognized compensation cost | $ 313 | |
weighted average period | 2 years 2 months 4 days |
EQUITY - Outstanding and exerci
EQUITY - Outstanding and exercisable options (Details) - $ / shares shares in Thousands | 12 Months Ended | ||||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 31, 2017 | |
EQUITY | |||||
Outstanding, Number of options | 135 | 2,270 | 3,578 | 6,391 | |
Outstanding, Weighted average remaining contractual life (In years) | 1 year | 9 months 18 days | 1 year 6 months | 2 years 4 months 24 days | |
Outstanding, Weighted average exercise price | $ 31.7 | $ 27.1 | $ 29.2 | $ 29.2 | |
Exercisable, Weighted average exercise price | $ 32.2 | ||||
Intel's 2006 Plan | |||||
EQUITY | |||||
Outstanding, Number of options | 135 | ||||
Outstanding, Weighted average remaining contractual life (In years) | 1 year | ||||
Outstanding, Weighted average exercise price | $ 31.7 | ||||
Exercisable, Number of options | 128 | ||||
Exercisable, Weighted average exercise price | $ 32.2 | ||||
Intel's plan | |||||
EQUITY | |||||
Vesting period | 3 years | ||||
$ 4.0 - 21.6 | Intel's 2006 Plan | |||||
EQUITY | |||||
Exercise price, minimum | 4 | ||||
Exercise price, maximum | $ 21.6 | ||||
Outstanding, Number of options | 59 | ||||
Outstanding, Weighted average remaining contractual life (In years) | 2 years 1 month 6 days | ||||
Outstanding, Weighted average exercise price | $ 6.1 | ||||
Exercisable, Number of options | 52 | ||||
Exercisable, Weighted average exercise price | $ 4 | ||||
$ 22.4 - 24.3 | Intel's 2006 Plan | |||||
EQUITY | |||||
Exercise price, minimum | 22.4 | ||||
Exercise price, maximum | $ 24.3 | ||||
Outstanding, Number of options | 8 | ||||
Outstanding, Weighted average remaining contractual life (In years) | 1 month 6 days | ||||
Outstanding, Weighted average exercise price | $ 23.5 | ||||
Exercisable, Number of options | 8 | ||||
Exercisable, Weighted average exercise price | $ 23.5 | ||||
$55.2 | Intel's 2006 Plan | |||||
EQUITY | |||||
Exercise price | $ 55.2 | ||||
Outstanding, Number of options | 68 | ||||
Outstanding, Weighted average remaining contractual life (In years) | 2 months 12 days | ||||
Outstanding, Weighted average exercise price | $ 55.2 | ||||
Exercisable, Number of options | 68 | ||||
Exercisable, Weighted average exercise price | $ 55.2 |
EQUITY - Option activity (Detai
EQUITY - Option activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Number of options | ||||
Options outstanding at beginning | 2,270 | 3,578 | 6,391 | |
Exercised | (36) | (1,308) | (2,807) | |
Forfeited | (6) | |||
Expired | (2,099) | |||
Options outstanding at ending | 135 | 2,270 | 3,578 | 6,391 |
Exercisable, Number of options | 128 | |||
Weighted average remaining contractual Life | ||||
Outstanding, Weighted average remaining contractual life (In years) | 1 year | 9 months 18 days | 1 year 6 months | 2 years 4 months 24 days |
Options exercisable | 1 year | |||
Weighted average exercise price | ||||
Options outstanding at beginning | $ 27.1 | $ 29.2 | $ 29.2 | |
Exercised | 22.3 | 32.8 | 29.3 | |
Forfeited | 24.5 | |||
Expired | 26.9 | |||
Options outstanding at ending | 31.7 | $ 27.1 | $ 29.2 | $ 29.2 |
Exercisable | $ 32.2 | |||
Aggregated intrinsic value | ||||
Options outstanding | $ 3 | $ 1 | $ 79 | $ 114 |
Options exercisable | $ 3 | |||
Share price | $ 50.25 | $ 26.43 | $ 51.31 | |
Number of options expected to vest | 7 | |||
Average weighted exercise price of options expected to vest | $ 21.6 |
EQUITY - RSU activity (Details)
EQUITY - RSU activity (Details) - Intel 2006 Plan - RSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Number of RSUs | |||
Outstanding at beginning | 5,692 | 5,278 | 4,339 |
Granted | 3,758 | 2,935 | |
Vested | (2,690) | (2,935) | (1,761) |
Forfeited | (291) | (409) | (235) |
Outstanding at ending | 2,711 | 5,692 | 5,278 |
Weighted average grant date fair value | |||
Outstanding at beginning | $ 44.8 | $ 46.5 | $ 44.6 |
Granted | 43.7 | 47.8 | |
Vested | 45 | 45.9 | 44 |
Forfeited | 46.1 | 48.1 | 46.4 |
Outstanding at ending | $ 44.4 | $ 44.8 | $ 46.5 |
Unrecognized compensation cost | $ 82 | ||
weighted average period | 1 year 7 days |
EQUITY - Share-based compensati
EQUITY - Share-based compensation expense summary (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
EQUITY | |||
Total share-based compensation | $ 252 | $ 174 | $ 97 |
Cost of revenue | |||
EQUITY | |||
Total share-based compensation | 2 | 2 | 1 |
Research and development, net | |||
EQUITY | |||
Total share-based compensation | 212 | 153 | 77 |
Sales and marketing | |||
EQUITY | |||
Total share-based compensation | 7 | 5 | 4 |
General and administrative | |||
EQUITY | |||
Total share-based compensation | $ 31 | $ 14 | $ 15 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||
Jun. 12, 2023 | Nov. 01, 2022 | Oct. 28, 2022 | Oct. 25, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Oct. 27, 2022 | |
EARNINGS (LOSS) PER SHARE | ||||||||
Number of shares issued | 94,652,348 | 51,911,905 | 100 | |||||
Par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Number of shares outstanding | 94,652,348 | 51,911,905 | 100 | |||||
Dilutive effect of equity incentive awards | 5,900,000 | 800,000 | ||||||
Numerator: | ||||||||
Net Income (Loss) | $ (27) | $ (82) | $ (75) | |||||
Denominator: | ||||||||
Weighted average common shares - basic | 805,000,000 | 759,000,000 | 750,000,000 | |||||
Weighted average common shares - diluted | 805,000,000 | 759,000,000 | 750,000,000 | |||||
Earnings (loss) per share: | ||||||||
Basic | $ (0.03) | $ (0.11) | $ (0.10) | |||||
Diluted | $ (0.03) | $ (0.11) | $ (0.10) | |||||
Class B common stock | ||||||||
EARNINGS (LOSS) PER SHARE | ||||||||
Number of shares issued | 711,500,000 | 750,000,000 | ||||||
Par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Number of shares outstanding | 711,500,000 | 750,000,000 | ||||||
Class B common stock | Cyclops holdings corporation | ||||||||
EARNINGS (LOSS) PER SHARE | ||||||||
Number of shares outstanding | 750,000,000 | |||||||
Number of shares issued during the period | 749,999,900 | |||||||
Class A common stock | ||||||||
EARNINGS (LOSS) PER SHARE | ||||||||
Par value (in dollars per share) | $ 0.01 | |||||||
Number of shares outstanding | 94,652,348 | |||||||
Number of shares converted into Class A common stock | 38,500,000 | |||||||
IPO | Class B common stock | ||||||||
EARNINGS (LOSS) PER SHARE | ||||||||
Number of shares issued | 100 | |||||||
IPO | Class A common stock | ||||||||
EARNINGS (LOSS) PER SHARE | ||||||||
Number of shares issued during the period | 41,000,000 | |||||||
Offering price per share | $ 21 | |||||||
Private placement | Class A common stock | ||||||||
EARNINGS (LOSS) PER SHARE | ||||||||
Number of shares issued during the period | 4,761,905 | |||||||
Offering price per share | $ 21 | |||||||
Over allotment option | Class A common stock | ||||||||
EARNINGS (LOSS) PER SHARE | ||||||||
Number of shares issued during the period | 6,150,000 |
INCOME TAXES - Loss before inco
INCOME TAXES - Loss before income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Income (loss) before taxes: | |||
U.S | $ (13) | $ (49) | $ (96) |
Non-U.S | 29 | 17 | 39 |
Income (loss) before income taxes | $ 16 | $ (32) | $ (57) |
INCOME TAXES - Benefit (provisi
INCOME TAXES - Benefit (provision) for income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Current taxes: | |||
Non-U.S | $ (58) | $ (67) | $ (47) |
Total current provision for income taxes | (58) | (67) | (47) |
Deferred taxes: | |||
U.S. | (28) | (28) | (30) |
Non-U.S. | 43 | 45 | 59 |
Total deferred provision for income taxes | 15 | 17 | 29 |
Total benefit (provision) for income taxes | $ (43) | $ (50) | $ (18) |
INCOME TAXES - Income taxes rec
INCOME TAXES - Income taxes reconciliation (Details) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Difference between the tax provision at the statutory federal income tax rate and the benefit (provision) for income taxes as a percentage of loss before income taxes (effective tax rate) | |||
Statutory federal income tax rate | 21% | 21% | 21% |
Increase (reduction) in rate resulting from: | |||
Foreign rate differential | 2.70% | (1.20%) | (1.90%) |
Technology incentives - current | (568.70%) | 312.70% | 183.10% |
Technology incentives - deferred | 461.50% | (230.60%) | (116.40%) |
U.S. branch taxation of foreign operations | 243.90% | (127.30%) | (54.40%) |
Changes in uncertain tax position, net | 42.10% | 16.10% | (0.30%) |
Share-based compensation related adjustments | (2.40%) | (0.50%) | (13.70%) |
Changes in valuation allowance | 43.10% | (151.90%) | (50.00%) |
Non-deductible expenses and other | 25.40% | (6.50%) | 1% |
Withholding taxes, net of credit | 12.10% | ||
Effective tax rate | 268.60% | (156.10%) | (31.60%) |
Tax rate on Special Preferred Technological Enterprises | 6% | ||
Percentage of annual income derived from exports for preferential tax rate | 25% |
INCOME TAXES - Deferred income
INCOME TAXES - Deferred income taxes (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 |
Deferred tax assets | |||
Share-based compensation | $ 105 | $ 89 | |
Provisions for employee benefits | 8 | 7 | |
Net operating losses carryforward | 103 | 142 | |
Research and development expenses | 455 | 283 | |
Operating lease liabilities | 12 | 13 | |
Foreign tax credit and deferrals | 13 | 33 | |
Intangible assets | 179 | 147 | |
Other | 15 | 3 | |
Gross deferred tax assets | 890 | 717 | |
Valuation allowance | (579) | (533) | $ (229) |
Total deferred tax assets | 311 | 184 | |
Deferred tax liabilities | |||
Intangible assets | (126) | (161) | |
Goodwill | (322) | (172) | |
Right of use assets | 11 | 13 | |
Total deferred tax liabilities | (459) | (346) | |
Net deferred tax liabilities | $ (148) | $ (162) |
INCOME TAXES - Changes in valua
INCOME TAXES - Changes in valuation allowance for deferred tax assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Changes in valuation allowance for deferred tax assets | |||
Valuation allowance at beginning of year | $ 533 | $ 229 | |
Additions | $ 185 | ||
Change in valuation allowance | 46 | 304 | 44 |
Valuation allowance at end of year | $ 579 | $ 533 | $ 229 |
INCOME TAXES - Uncertain tax po
INCOME TAXES - Uncertain tax positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions | |||
Balance at the beginning of the year | $ 4 | $ 4 | |
Changes in balances related to tax positions taken during current period | $ 7 | ||
Settlements with taxing authorities | 0 | ||
Lapse of statute of limitations | $ (4) | ||
Balance at the end of the year | $ 7 | $ 4 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) $ in Millions | Dec. 30, 2023 USD ($) |
INCOME TAXES | |
Operating loss carryforwards before joining consolidated income tax filing | $ 144 |
Operating loss carryforwards before joining consolidated income tax filing | 139 |
Operating loss carryforward | $ 183 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 28, 2022 | Oct. 25, 2022 | Apr. 21, 2022 | Nov. 30, 2022 | Mar. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 31, 2017 | May 31, 2022 | |
RELATED PARTIES TRANSACTIONS | ||||||||||
Aggregate principal amount | $ 1,500,000,000 | |||||||||
Gain (loss) recognized from change in interest rate | $ 0 | |||||||||
Related party loan | $ 0 | 0 | ||||||||
Interest income with related party | 0 | 18,000,000 | $ 3,000,000 | |||||||
Leasing costs | 4,000,000 | 3,000,000 | 1,500,000 | |||||||
Intel | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Dividend note remain owed | $ 0 | 0 | ||||||||
Amount payable under tax sharing agreement | 37,000,000 | 34,000,000 | ||||||||
Amount of dividend note | $ 2,600,000,000 | |||||||||
Cyclops holdings corporation | Class B common stock | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Number of shares issued during the period | 749,999,900 | |||||||||
Arrangement 1 | Intel | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Aggregate principal amount | 1,800,000,000 | $ 1,500,000,000 | ||||||||
Renewal period | 1 year | |||||||||
Arrangement 2 | Intel | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Aggregate principal amount | $ 1,000,000,000 | $ 750,000,000 | ||||||||
Renewal period | 1 year | |||||||||
Arrangement 2 | Intel | Maximum | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Aggregate principal amount | $ 750,000,000 | |||||||||
Arrangement 3 | Intel | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Aggregate principal amount | $ 500,000,000 | $ 100,000,000 | ||||||||
Renewal period | 1 year | |||||||||
Interest rate based on applicable margin | 0% | |||||||||
Arrangement 3 | Intel | Maximum | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Aggregate principal amount | $ 100,000,000 | |||||||||
Stock Compensation Recharge Agreement | Intel | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Adjustment to additional paid-in capital for reimbursement amount | 100,000,000 | 118,000,000 | 162,000,000 | |||||||
Dividend Note | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Aggregate principal amount | $ 3,500,000,000 | |||||||||
Interest rate percentage | 1.26% | |||||||||
Repayments of debt | $ 900,000,000 | |||||||||
Contribution and Subscription Agreement | Class B common stock | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Number of shares issued during the period | 749,999,900 | |||||||||
Threshold limit on cash, cash equivalents, or marketable securities | $ 1,000,000,000 | |||||||||
Contribution and Subscription Agreement | Cyclops holdings corporation | Class B common stock | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Percentage of equity interest acquired | 100% | |||||||||
Equity transaction | Moovit | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Aggregate principal amount | $ 900,000,000 | |||||||||
Percentage of equity interest acquired | 100% | |||||||||
Chief Executive Officer | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Travel reimbursements cost | 1,700,000 | 1,000,000 | $ 1,100,000 | |||||||
Administrative Services Agreement | Intel | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Costs incurred | 4,000,000 | 3,000,000 | ||||||||
Technology and Services Agreement | Intel | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Costs incurred | 5,000,000 | $ 400,000 | ||||||||
LiDAR Product Collaboration Agreement | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Lidar sensor system development costs | $ 40,000,000 | |||||||||
Product collaboration agreement term | 10 years | |||||||||
LiDAR Product Collaboration Agreement | Intel | ||||||||||
RELATED PARTIES TRANSACTIONS | ||||||||||
Lidar sensor system development costs | $ 20,000,000 | |||||||||
Amount received or receivable | $ 0 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
GOODWILL | ||
Goodwill | $ 10,895 | $ 10,895 |
Mobileye | ||
GOODWILL | ||
Goodwill | 10,784 | 10,784 |
Other | ||
GOODWILL | ||
Goodwill | $ 111 | $ 111 |
IDENTIFIED INTANGIBLE ASSETS -
IDENTIFIED INTANGIBLE ASSETS - Components (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
IDENTIFIED INTANGIBLE ASSETS | ||
Gross Assets | $ 4,491 | $ 4,759 |
Accumulated Amortization | 2,438 | 2,232 |
Net | 2,053 | 2,527 |
Developed technology | ||
IDENTIFIED INTANGIBLE ASSETS | ||
Gross Assets | 3,705 | 3,973 |
Accumulated Amortization | 2,008 | 1,870 |
Net | 1,697 | 2,103 |
Customer relationships & brands | ||
IDENTIFIED INTANGIBLE ASSETS | ||
Gross Assets | 786 | 786 |
Accumulated Amortization | 430 | 362 |
Net | $ 356 | $ 424 |
IDENTIFIED INTANGIBLE ASSETS _2
IDENTIFIED INTANGIBLE ASSETS - Amortization expenses and weighted average useful lives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
IDENTIFIED INTANGIBLE ASSETS | |||
Total amortization expenses | $ 474 | $ 544 | $ 509 |
Developed technology | |||
IDENTIFIED INTANGIBLE ASSETS | |||
Total amortization expenses | $ 406 | 469 | 419 |
Developed technology | Weighted Average Useful Life | |||
IDENTIFIED INTANGIBLE ASSETS | |||
Useful Life | 10 years | ||
Customer relationships & brands | |||
IDENTIFIED INTANGIBLE ASSETS | |||
Total amortization expenses | $ 68 | $ 75 | $ 90 |
Customer relationships & brands | Weighted Average Useful Life | |||
IDENTIFIED INTANGIBLE ASSETS | |||
Useful Life | 12 years |
IDENTIFIED INTANGIBLE ASSETS _3
IDENTIFIED INTANGIBLE ASSETS - Future amortization expenses (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
IDENTIFIED INTANGIBLE ASSETS | ||
2024 | $ 444 | |
2025 | 443 | |
2026 | 332 | |
2027 | 179 | |
2028 | 176 | |
Thereafter | 479 | |
Total | $ 2,053 | $ 2,527 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - segment | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
SEGMENT INFORMATION | |||
Number of operating segments | 2 | ||
Percentage of revenue from majority customers | 89% | 89% | 94% |
SEGMENT INFORMATION - Segment r
SEGMENT INFORMATION - Segment results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
SEGMENT INFORMATION | |||
Revenues | $ 2,079 | $ 1,869 | $ 1,386 |
Cost of revenues | 1,032 | 947 | 731 |
Research and development, net | 889 | 789 | 544 |
Sales and Marketing | 118 | 120 | 134 |
General and administrative | 73 | 50 | 34 |
Operating income (loss) | (33) | (37) | (57) |
Interest income (expense) with related party, net | (6) | 3 | |
Other financial income (expense), net | 49 | 11 | (3) |
Income (loss) before taxes on income | 16 | (32) | (57) |
Share-based compensation | 252 | 174 | 97 |
Depreciation of property and equipment | 39 | 23 | 17 |
Operating Segments | Mobileye | |||
SEGMENT INFORMATION | |||
Revenues | 2,045 | 1,843 | 1,363 |
Cost of revenues | 620 | 473 | 308 |
Research and development, net | 848 | 747 | 505 |
Sales and Marketing | 38 | 34 | 30 |
General and administrative | 62 | 34 | 21 |
Operating income (loss) | 477 | 555 | 499 |
Share-based compensation | 233 | 158 | 85 |
Depreciation of property and equipment | 39 | 23 | 17 |
Operating Segments | Other | |||
SEGMENT INFORMATION | |||
Revenues | 34 | 26 | 23 |
Cost of revenues | 6 | 5 | 4 |
Research and development, net | 41 | 42 | 39 |
Sales and Marketing | 12 | 11 | 14 |
General and administrative | 11 | 12 | 13 |
Operating income (loss) | (36) | (44) | (47) |
Share-based compensation | 19 | 16 | 12 |
Amounts not allocated to segments | |||
SEGMENT INFORMATION | |||
Cost of revenues | 406 | 469 | 419 |
Sales and Marketing | 68 | 75 | 90 |
General and administrative | 4 | ||
Operating income (loss) | $ (474) | $ (548) | $ (509) |
SEGMENT INFORMATION - Total rev
SEGMENT INFORMATION - Total revenues based on the country (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
SEGMENT INFORMATION | |||
Revenue | $ 2,079 | $ 1,869 | $ 1,386 |
China | |||
SEGMENT INFORMATION | |||
Revenue | 640 | 551 | 270 |
USA | |||
SEGMENT INFORMATION | |||
Revenue | 437 | 472 | 363 |
Germany | |||
SEGMENT INFORMATION | |||
Revenue | 353 | 268 | 263 |
South Korea | |||
SEGMENT INFORMATION | |||
Revenue | 164 | 115 | 107 |
United Kingdom | |||
SEGMENT INFORMATION | |||
Revenue | 150 | 221 | 198 |
Poland | |||
SEGMENT INFORMATION | |||
Revenue | 97 | 69 | 24 |
Czech Republic | |||
SEGMENT INFORMATION | |||
Revenue | 50 | 8 | |
Hungary | |||
SEGMENT INFORMATION | |||
Revenue | 94 | 87 | 66 |
Singapore | |||
SEGMENT INFORMATION | |||
Revenue | 21 | 25 | 42 |
Rest of World | |||
SEGMENT INFORMATION | |||
Revenue | $ 73 | $ 53 | $ 53 |
SEGMENT INFORMATION - Revenue f
SEGMENT INFORMATION - Revenue from major customers (Details) - Revenue - Customer Concentration | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Customer A | |||
SEGMENT INFORMATION | |||
Concentration risk percentage | 30% | 38% | 35% |
Customer B | |||
SEGMENT INFORMATION | |||
Concentration risk percentage | 24% | 18% | 19% |
Customer C | |||
SEGMENT INFORMATION | |||
Concentration risk percentage | 14% | 15% | 17% |
SEGMENT INFORMATION - Accounts
SEGMENT INFORMATION - Accounts receivable balances of major customers (Details) - Accounts Receivable - Credit Concentration Risk | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Customer A | ||
SEGMENT INFORMATION | ||
Concentration risk percentage | 44% | 32% |
Customer B | ||
SEGMENT INFORMATION | ||
Concentration risk percentage | 10% | 19% |
Customer C | ||
SEGMENT INFORMATION | ||
Concentration risk percentage | 22% | 25% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Events - RSUs shares in Thousands, $ in Millions | 1 Months Ended |
Jan. 31, 2024 USD ($) shares | |
SUBSEQUENT EVENTS | |
Aggregate value of shares issuable upon vesting of restricted stock units | $ | $ 15.4 |
Granted shares | shares | 596 |
Service period | 3 years |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (27) | $ (82) | $ (75) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |